Shell has filed a challenge in the New York Supreme Court against an arbitration decision that favored U.S.-based Venture Global LNG in an ongoing dispute over liquefied natural gas (LNG) supply contracts.
The dispute stems from long-term contracts between Shell and Venture Global, under which Shell was to receive LNG cargoes from the Calcasieu Pass facility in Louisiana. However, Shell and several other European buyers have alleged that Venture Global withheld contracted cargoes while profiting from selling spot-market LNG during a period of high global prices.
Earlier this year, an arbitration panel reportedly ruled in favor of Venture Global, rejecting Shell’s claims of contractual breaches. Shell’s latest move seeks to overturn or modify that decision, arguing procedural and substantive errors in the arbitration process.
The legal battle underscores ongoing tensions between U.S. LNG exporters and European buyers amid rising global demand and fluctuating energy markets. The outcome could set a precedent for future long-term LNG contract enforcement and dispute resolution in the global energy sector.
Neither Shell nor Venture Global has issued an official statement regarding the New York filing as of now.
