BP Wins Arbitration Case Against Venture Global Over LNG Contract Dispute

BP has won its arbitration case against U.S. liquefied natural gas (LNG) supplier Venture Global, after the company failed to deliver LNG under a long-term contract that was supposed to begin in late 2022. The International Chamber of Commerce International Court of Arbitration ruled that Venture Global breached its obligations by delaying the declaration of commercial operations at its Calcasieu Pass LNG plant and failing to act as a “reasonable and prudent operator,” according to Venture Global’s regulatory filing.

The decision marks a sharp contrast to an earlier ruling in August, where Venture Global prevailed in a similar arbitration with Shell. The reasons for the differing outcomes remain unclear. BP, which is seeking over $1 billion in damages plus interest and legal fees, said it was pleased with the decision and looked forward to determining the compensation amount in the next phase of arbitration, expected in 2026.

Venture Global expressed disappointment in the ruling, arguing that it contradicts the previous Shell decision. The company said it is exploring all legal options and will continue to defend its position. Following the news, Venture Global’s shares fell over 10% in after-hours trading, wiping out around $3.3 billion in market capitalization.

In addition to BP, several other energy firms, including Edison and Galp, have filed claims against Venture Global, accusing it of prioritizing higher-priced spot market LNG sales during the energy crisis that followed Russia’s 2022 invasion of Ukraine. Venture Global maintained that it was permitted to conduct spot sales while the Calcasieu Pass facility was still awaiting official commercial certification due to a power island malfunction.

The company officially began full operations in April 2025, after which its profit margins dropped sharply—by about 70%—as it resumed fulfilling long-term contracts amid falling European gas prices.