Venture Global breached LNG supply deal with Galp, tribunal rules

Oct 8 (Reuters) - Venture Global said on Thursday an arbitration tribunal found its Calcasieu Pass unit breached an LNG supply agreement with Portugal's Galp, marking the second setback for the firm over cargo deliveries from the project.

BP is the only other company to have prevailed in arbitration proceedings against Venture Global, as the US exporter deals with a string of disputes with long-term LNG buyers, which also includes Shell, Repsol, Italy's Edison and Poland's Orlen.

The buyers accuse Venture Global of selling cargoes on the spot market at higher prices following Russia's invasion of Ukraine instead of delivering contracted volumes from initial production at the Louisiana plant.

Venture Global has argued the spot sales were allowed as faulty power-island equipment delayed the start of commercial operations.

The company said in its regulatory filing on Thursday that one of the three arbitrators at the International Chamber of Commerce tribunal dissented and that it is evaluating its options while continuing to defend its position.

Remedies will be determined in a separate damages hearing expected in 2027 or 2028, with any final award subject to an aggregate seller liability cap of up to $170 million under the agreement, it added.

The company also said the ruling does not affect the agreement currently being performed by the parties and noted it has delivered 20 cargoes to Galp since Calcasieu Pass reached commercial operations.

After BP won its arbitration case in 2025, Venture Global said in its annual report the British firm is seeking at least $3.7 billion in damages, though the claim could exceed $6 billion before interest, costs and fees.

Venture Global has prevailed in separate arbitrations brought by Shell and Repsol, and subsequently defeated a court challenge related to that arbitration award.

Italy's Edison settled its dispute earlier this year, with Venture Global agreeing to supply additional LNG cargoes beyond those required under their long-term contract.

(Reporting by Varun Sahay in Bengaluru; Editing by Vijay Kishore)