Energy giant BP is pursuing damages of at least $3.7 billion following its successful arbitration case against American natural gas company Venture Global over undelivered liquefied natural gas shipments, according to newly released company documents.
According to Venture Global’s annual report published this week, BP’s compensation demands range from $3.7 billion to potentially more than $6 billion, plus additional costs for interest and legal expenses.
When contacted for comment, BP representatives declined to respond, while Venture Global’s spokesperson dismissed the British company’s damage claims as “unserious and not supported by evidence or controlling law.”
The arbitration case represents part of a massive legal battle in the LNG sector, with major energy companies including BP, Shell, Unipec, Edison, Galp, Repsol and Orlen all filing disputes against Venture Global.
BP successfully won its October arbitration regarding Venture Global’s inability to fulfill LNG deliveries under a long-term agreement scheduled to commence in late 2022.
The International Chamber of Commerce’s arbitration court determined that Venture Global violated its contractual duties by failing to properly announce the start of commercial operations at its Calcasieu Pass facility and by not operating as a “reasonable and prudent operator,” according to Venture Global’s regulatory documents filed at that time.
Despite this loss, Venture Global, which ranks as America’s second-largest LNG exporter, has prevailed in two of the three arbitration cases filed against the company.
The company successfully defended itself in Shell’s arbitration claim and later defeated Shell’s court appeal challenging that arbitration decision.
