Venture Global breached LNG supply deal with Galp, tribunal rules
VG•An arbitration tribunal found that Venture Global’s Calcasieu Pass unit breached its long-term supply agreement with Galp by failing to declare commercial operations on time. Remedies will be decided in a separate hearing expected in 2027 or 2028, with liability capped at $170 million.
1. Tribunal finds breach
The tribunal found Venture Global Calcasieu Pass breached its obligation to declare commercial operations in a timely manner under its long-term sales and purchase agreement with Galp Trading. Venture Global said it is evaluating its options and continuing to defend its position; one of the three arbitrators disagreed with the majority.
2. Damages hearing ahead
Remedies will be determined in a separate damages hearing expected in 2027 or 2028. Any final award is subject to a $170 million aggregate seller liability cap under the agreement. Venture Global said it has delivered 20 cargoes to Galp since Calcasieu Pass reached commercial operations on April 15, 2025, and that the ruling does not affect the agreement currently being performed.
3. Other buyer disputes
The ruling is the latest in a series of disputes with long-term buyers who allege Venture Global diverted cargoes to the spot market during a period of high LNG prices rather than meeting contracted supply commitments. Other buyers in similar disputes include Shell, BP, Repsol, Edison and Orlen.
