Venture Global unit breached Galp LNG contract, ICC tribunal rules
A damages hearing on the Calcasieu Pass dispute is not expected until 2027 or 2028, with any award capped at $170 million
Published
The ICC International Court of Arbitration has found that Venture Global Calcasieu Pass, a subsidiary of Venture Global, breached its obligation to declare commercial operation of the Calcasieu Project on time under a long-term supply agreement with Galp Trading.
The tribunal's majority reached the breach finding. One of the three arbitrators dissented. Remedies will be decided separately, at a damages hearing the company expects in 2027 or 2028. Any final award would be capped at $170 million under the seller's aggregate liability limit in the agreement.
Venture Global said it was disappointed with the decision and called it inconsistent with earlier arbitration findings involving Shell and Repsol. The company said it is evaluating its options while continuing to defend its position.
The Galp ruling follows those earlier disputes with Shell and Repsol over the same commercial-operation-date defense at Calcasieu Pass, and the pattern suggests arbitrators are growing less receptive to that argument across counterparties. The $170 million cap limits Venture Global's immediate exposure, but the wait for the damages phase stretches the uncertainty over its contractual reliability with long-term buyers, and repeated breach findings across multiple offtakers could affect how future supply agreements with the company are negotiated or priced.