Energy and petrochemical company, Shell is starting arbitration hearings over the supply of liquefied natural gas from Venture Global’s Calcasieu Pass facility.
According to Reuters, Shell and other companies including BP, Galp and Repsol have launched contract arbitration cases in the United States and Europe over the status of the plant and their inability to obtain contract cargoes for more than two years.
“Frustratingly, we have got no volumes against our term agreement which underpinned the financing for the project. We’re going through arbitration hearings this quarter,” Shell, CEO, Wael Sawan said on a call with Reuters analysts.
Shell and others say they have lost billions of dollars in profit from gas promised under long-term contracts but it was not delivered.
Venture Global LNG contends it has not fully commissioned the Louisiana plant.
In October 2024, Shell lost a bid to have the U.S. Federal Energy Regulatory Commission allow it to view nonpublic commissioning documents related to Venture Global LNG’s Calcasieu Pass facility, a setback in a broader dispute over access to cargoes from the plant.