![](https://www.offshore-technology.com/wp-content/uploads/sites/20/2023/07/Venture-globa.jpg)
Oil and gas supermajors Shell and BP will both go to court with US liquified natural gas (LNG) trader Venture Global LNG over the non-delivery of LNG cargoes.
The two global petrofuels giants are entering into separate arbitration against Venture at the London Court of International Arbitration. Sources told Reuters that the dispute regards the fact that Venture was selling LNG to non-contract customers while failing to supply contracted LNG cargoes to Shell and BP.
Being denied the contracted LNG, according to the report, caused Shell and BP to miss out on “billions of dollars in sales” that went to Venture. Amid LNG price rises caused by Russia’s reduction in gas supply to Europe, Venture had been selling LNG to non-contracted European customers willing to pay the inflated spot price.
It is the latest in a string of arbitrations brought against the company over its LNG operations. In June, it was reported that Italian energy company Edison had brought arbitrations against Venture for non-delivery of contracted cargoes, while Spanish energy company Repsol had appealed to the US Department of Energy for the same reason.
The lack of delivered cargo has been explained by Venture as the result of extensive repairs being undertaken at its Calcasieu Pass LNG plant. The company revealed after the plant’s opening that the facility’s power supply required “urgent repairs”, delaying output.
Venture, however, has always maintained it has done nothing wrong. It has remained “in full compliance with all obligations under our long-term contracts”, company spokeswoman Shaylyn Hynes stated.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
![](/wp-content/themes/goodlife-wp-B2B/assets/images/company-profile-unit.png)
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe controversies have not stopped Venture from agreeing further LNG deals globally. In late June the company agreed a 20-year sale and purchase agreement with German energy conglomerate Securing Energy for Europe. Venture will become the largest LNG supplier in Germany with 4.5 million tonnes of LNG transported per year (mtpa) under the deal.
The LNG will be provided by CP2, Venture’s upcoming LNG export facility set to begin construction this year. Around 50% of the plant’s 20mtpa nameplate capacity has already been sold.