Venture Global breached LNG supply deal with Galp, tribunal rules
VG•An arbitration tribunal found Venture Global’s Calcasieu Pass unit breached its LNG supply agreement with Galp. Damages will be considered in a separate hearing expected in 2027 or 2028, with seller liability capped at up to $170 million under the agreement.
1. Tribunal ruling
Venture Global said an arbitration tribunal found its Calcasieu Pass unit breached an LNG supply agreement with Portugal’s Galp. One of the three arbitrators dissented, and Venture Global said it is evaluating its options while continuing to defend its position.
2. Damages and deliveries
Remedies will be determined in a separate damages hearing expected in 2027 or 2028. Any final award is subject to an aggregate seller liability cap of up to $170 million under the agreement. Venture Global said the ruling does not affect the agreement currently being performed and that it has delivered 20 cargoes to Galp since Calcasieu Pass reached commercial operations.
3. Other disputes
The ruling marks the second setback for Venture Global over cargo deliveries. Buyers have accused the company of selling cargoes on the spot market at higher prices after Russia’s invasion of Ukraine instead of delivering contracted volumes; Venture Global has argued faulty power-island equipment delayed commercial operations and allowed the spot sales.
