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Venture Global ( VG ) breached obligations at Calcasieu Pass

plant, ICC

rules

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BP seeking over $1 billion in damages from Venture Global ( VG )

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Venture Global ( VG ) shares drop 10% after arbitration ruling

(Adds additional background in paragraphs 3, 5, and from 9th

paragraph onward.)

By Curtis Williams

HOUSTON, Oct 9 (Reuters) - BP has won its

arbitration case against Venture Global ( VG ) over the U.S.

supplier's failure to deliver liquefied natural gas under a

long-term contract that was due to start in late 2022, Venture

Global ( VG ) said on Thursday.

The International Chamber of Commerce International Court

of Arbitration found that Venture Global ( VG ) breached its

obligations to declare commercial operations had begun at the

Calcasieu Pass plant in a timely manner and act as a "reasonable

and prudent operator," Venture Global ( VG ) said in a regulatory

filing.

The BP ruling contrasts with a decision in August that saw

Venture Global ( VG ) prevail in a similar complaint from Shell

. It was not immediately clear why the two cases

resulted in different results. BP is seeking damages of more

than $1 billion plus interest, costs and attorneys' fees.

"The company is disappointed by the arbitration tribunal's

decision in the proceeding with BP, which it believes

contradicts the decisive findings in the prior arbitration

involving Shell," Venture Global ( VG ) said in its filing.

Shares of Venture Global ( VG ) were down more than 10% in

after-hours trade, shaving off nearly $3.3 billion from the

company's market capitalization.

HEARING TO DETERMINE DAMAGES NEXT YEAR

A separate hearing is expected in 2026 to determine the

extent of the damages the U.S. operator will have to pay BP, and

the amount may exceed a cap on how much BP and other customers

could claim that is contained in the original sales agreement,

Venture Global ( VG ) said.

BP said it was pleased with the outcome of this phase of the

arbitration and looked forward to the determination of how much

it would be paid as a result of Venture Global's ( VG ) breach of

contract.

Venture Global ( VG ) said it was evaluating all available options

in response to the tribunal's ruling and it would continue to

vigorously defend its position.

The company also reported on Thursday that it reached a

resolution with another Calcasieu Pass customer that had taken

it to arbitration, without naming the company.

That settlement has no material impact on Venture Global ( VG ), it

said in the filing.

Other companies, including Edison and Galp

, have also filed claims against Venture Global ( VG ),

accusing it of profiting from the sale of LNG on the spot market

after Russia's 2022 invasion of Ukraine, rather than shipping

previously contracted LNG cargoes to them from the Calcasieu

Pass export facility in Louisiana at much lower prices.

Throughout the dispute, Venture Global ( VG ) has argued it was

allowed to conduct the spot sales after the start of official

commercial operations was delayed by a faulty power island.

The company officially started commercial operations at

Calcasieu Pass in April 2025 and has since earned significantly

lower prices from selling LNG to BP and other customers at

contracted prices.

Venture Global's ( VG ) average fees collected fell around 70% from

the first quarter of the year to the second, after it started

honoring the longer-term contracts and stopped the contested

spot sales. Over that period, the Dutch Title Transfer Facility

that determines gas prices in Europe, where Venture Global ( VG ) sells

most of its cargoes, dropped 24%.