In a filing on Thursday, Venture Global said the International Chamber of Commerce’s International Court of Arbitration ruled that it breached its obligation to timely declare commercial operations at its Calcasieu Pass export facility in Louisiana and to act as a “reasonable and prudent operator.”
The decision contrasts with an earlier ruling in August, when Venture Global prevailed in a similar case brought by Shell Plc. It was not immediately clear why the two cases produced different outcomes.
BP is seeking more than $1 billion in damages, plus interest, costs, and attorneys’ fees.
“The company is disappointed by the arbitration tribunal’s decision in the proceeding with BP, which it believes contradicts the decisive findings in the prior arbitration involving Shell,” Venture Global said in its filing.
Following the announcement, Venture Global’s shares fell more than 10% in after-hours trading, wiping about $3.3 billion off its market capitalization.
Damages Hearing Set for 2026
A separate hearing to determine the amount of damages will be held in 2026, and Venture Global noted that the award could exceed the liability cap specified in its original sales agreement with BP.
BP welcomed the decision, saying it was “pleased with the outcome of this phase of the arbitration” and looked forward to the damages determination.
Venture Global said it was reviewing “all available options” and would “continue to vigorously defend its position.”
Broader LNG Disputes
The U.S. LNG exporter also disclosed that it had reached a settlement with another Calcasieu Pass customer, though it did not name the company, adding that the resolution would have “no material impact” on its finances.
Other LNG buyers, including Edison SpA and Galp Energia, have also filed claims against Venture Global. The companies allege that Venture Global diverted contracted LNG cargoes to the spot market—where prices soared following Russia’s 2022 invasion of Ukraine—rather than honoring long-term supply agreements.
Venture Global has maintained that the spot sales were permitted under its contracts, as the plant had not yet entered official commercial operations due to technical issues with a faulty power island.
The company finally declared commercial operations in April 2025, after which it began delivering cargoes under long-term contracts. However, its average LNG sales fees fell about 70% from the first to the second quarter of 2025 as it stopped spot sales and prices on the Dutch Title Transfer Facility (TTF) benchmark dropped 24% during the same period.