BP's Winning Strategy Against Venture Global LNG cover art

BP's Winning Strategy Against Venture Global LNG

BP's Winning Strategy Against Venture Global LNG

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 Details a major legal and commercial conflict within the Liquefied Natural Gas (LNG) sector, centered on disputes between several global energy firms and U.S. producer Venture Global LNG. The article highlights that BP recently won a significant arbitration case against Venture Global — which had sought over $1 billion in damages — after successfully arguing that the company engaged in unfair conduct by withholding contracted cargoes.
This outcome contrasts with a similar case involving Shell, which lost its arbitration after failing to make the same unfair behavior claim. Other energy firms, including Galp, Edison, and Repsol, have launched parallel legal actions accusing Venture Global of diverting LNG cargoes to the more lucrative spot market amid soaring prices following the Russian invasion of Ukraine.
Venture Global, however, defends its actions by asserting that its Louisiana export terminal was still in a commissioning phase, meaning it was not yet bound to deliver cargoes under its long-term supply contracts. Nonetheless, the BP tribunal found that Venture Global had failed to act as a “reasonable and prudent operator,” reinforcing accusations that the company exploited market conditions at the expense of contractual partners.
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