Venture Global denies Shell fraud claims in LNG dispute
Venture Global rejected allegations of fraud from Shell in an ongoing arbitration over liquefied natural gas (LNG) contracts, filing a response in the New York Supreme Court on Tuesday. The LNG producer also accused Shell of breaching arbitration confidentiality.
The dispute stems from Venture Global’s alleged failure to deliver LNG under long-term contracts while selling on the spot market as prices surged following Russia’s invasion of Ukraine. Shell claimed a third party testified that Venture Global delayed the start of its Calcasieu Pass LNG plant and alleged misleading statements. Venture Global said Shell provided no evidence and denied any misleading conduct, News.Az reports, citing Reuters.
Venture Global further highlighted an email from a Shell executive expressing interest in finding a commercial resolution for both the Calcasieu Pass and Plaquemines projects, despite the ongoing arbitration.
The company’s shares have dropped 22% since Shell filed its challenge, trading near an all-time low of $6.56 per share, compared with $24 at market debut in January.
Legal experts noted that BP’s recent arbitration win against Venture Global has strengthened Shell’s argument that access to full evidence is critical in these proceedings.
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