Venture Global breached LNG supply deal with Galp, tribunal rules

Tribunal Rules Venture Global Breached LNG Supply Agreement with Galp

Venture Global Arbitration Ruling and Industry Impact

Oct 8 (Reuters) - Venture Global said on Thursday an arbitration tribunal found its Calcasieu Pass unit breached a long-term supply agreement with Portugal's Galp by failing to declare commercial operations at the LNG project on time.

The ruling is the latest in a series of disputes between Venture Global and its long-term buyers, who allege the delay allowed the company to divert cargoes to the spot market during a period of high LNG prices rather than meeting its contracted supply commitments.

Background of the Dispute

Here are more details:

Other Buyers in Dispute

• Other LNG buyers in similar disputes with Venture Global include Shell, BP, Repsol, Italy's Edison and Poland's Orlen.

Tribunal Findings

• The tribunal found that Venture Global Calcasieu Pass breached its obligation to declare commercial operations in a timely manner under the long-term sales and purchase agreement with Galp Trading.

Company Response

• The company said in a regulatory filing it is evaluating its options while continuing to defend its position, noting that one of the three arbitrators disagreed with the majority's finding.

Future Remedies and Damages

• Remedies will be determined in a separate damages hearing expected in 2027 or 2028, with any final award subject to a $170 million aggregate seller liability cap under the agreement, the company said.

Ongoing Operations and Agreement Status

• Venture Global added it has delivered 20 cargoes to Galp since Calcasieu Pass reached commercial operations on April 15, 2025.

• The ruling does not affect the terms of the agreement currently being performed by the parties, the company said.

Reporting and Editorial Information

(Reporting by Varun Sahay in Bengaluru; Editing by Vijay Kishore)