Venture Global, Inc. (NYSE:VG) shares are tumbling premarket on Friday after a wholly-owned subsidiary of BP p.l.c. (NYSE:BP) won an arbitration against the company over its failure to supply liquefied natural gas.
BP Wins Arbitration Against Venture Global
This week, the International Chamber of Commerce (ICC) issued a partial final award in the arbitration with BP Gas Marketing Limited related LNG sales under the long-term sales and purchase agreement (SPA) from the Calcasieu Project.
The tribunal found that Venture Global’s subsidiary, Venture Global Calcasieu Pass, LLC (VGCP), missed the COD declaration and did not act as a “Reasonable and Prudent Operator.”
BP is seeking damages exceeding $1.0 billion, along with interest, costs, and attorneys’ fees.
A damages hearing is expected in 2026, after which a final award will be issued.
Financial and Operational Impact
The company does not expect the SPA’s liability cap to limit the final award.
This settlement has no material impact on Venture Global’s financials, and the arbitration is now fully closed.
Venture Global will continue supplying low-cost U.S. LNG under this agreement.
The SPA terms remain in effect, with 14 cargos already delivered to BP. The company is reviewing options and plans to defend its position.
Past Disputes
The company says that it disagrees with the ruling, noting it conflicts with prior Shell PLC (NYSE:SHEL) arbitration findings and independent reviews.
Notably, in August, the company announced the favorable tribunal ruling in its arbitration with Shell, stating that the decision confirms its contracts, agreed upon with all customers, have been consistently honored.
Since last year, Venture Global LNG’s Calcasieu Pass plant has been central to a prolonged dispute between energy companies, including BP and Shell, regarding access to liquefied natural gas from the facility.
Investors can gain exposure to the stock via Pacer American Energy Independence ETF (NYSE:USAI) and InfraCap MLP ETF (NYSE:AMZA).
Price Action: VG shares were trading lower by 18.32% to $10.28 at last check Friday.
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