Fresh off a victory in an arbitration case brought by Shell, US LNG operator Venture Global is confident it will prevail in the remaining contract disputes over the delayed deliveries at its 12.4mn t/yr (1.65bn ft³/d) Calcasieu Pass facility in Louisiana.
The company said on Tuesday that an arbitration tribunal ruled in its favor over Shell, one of several long-term Calcasieu Pass offtake customers that argued Venture Global was unjustified in deferring contractual deliveries for several years despite exporting LNG on the spot market.
All of the contracts in question are similar and are based on US project finance deals that have been used by other companies, making it likely Venture Global will win the remaining cases, chief executive Mike Sabel said,
"This was an unnecessary distraction because this contract language has always been clear and standard and straightforward," Sabel said.
The remaining proceedings are in different tribunals than the Shell case, but the cases center on the same set of facts and contract terms, Sabel said.
Venture Global's customers have sought damages ranging from $6.7bn-$7.4bn, according to filing with the Securities and Exchange Commission, though liability claims are capped at $1.6bn.
Calcasieu Pass began exporting LNG on 1 March 2022 — less than a week after Russia, then a key supplier of gas to Europe, invaded Ukraine — but did not begin deliveries to its long-term customers until 15 April 2025. It instead sold its LNG in the spot market, saying the terminal was not able to be placed into commercial service, the point at which contracted deliveries begin, until all of its 18 liquefaction trains were producing LNG and it resolved an issue with a segment of its on-site power generation.
Plaquemines on track for 4Q2026 commercial start
The company's second LNG terminal, the 27.2mn t/yr Plaquemines facility south of New Orleans, also is expected to undergo a prolonged commissioning process, with up to 240 cargoes set to be exported in 2025.
The first phase, which consists of 12 liquefaction blocks, is expected to begin commercial deliveries in the fourth quarter of 2026. The second phase, which has six blocks, is expected to do so in mid-2027.
Plaquemines is now producing LNG through 14 blocks, with another approved to take feedgas. The facility is partially using temporary power to mitigate construction delays with its on-site power generation.
