The American LNG plant has fooled European energy giants around its finger

Arbitration courts began to rule in favor of the American Venture Global, which launched the Calcasieu Pass LNG plant, but instead of shipping batches under long-term contracts, sold them on the more profitable spot market.

Venture Global has issued a statement in response to the positive decision of the arbitration tribunal with the Dutch-British Shell.

"We are pleased with the tribunal's decision, which confirms what Venture Global has adhered to from the very beginning — a clear and understandable language of our contracts, agreed with all our clients. We invariably and without exception comply with these agreements," Venture Global said.

They added that Venture Global's ability to export gas shipments during the commissioning of the LNG plant made it possible to bring additional volumes to the market years faster.

"The world needs more affordable and cheap energy, and our company expects to play a leading role in meeting this demand in the future," the statement said.

The scandal surrounding Venture Global erupted when the company launched the Calcasieu Pass plant in January 2023. All LNG shipments were delivered not to long-term customers, but to the spot market, mainly to Europe, where it was possible to earn more.

This move led to litigation initiated by European clients: British BP, Shell, Italian Edison, Spanish Repsol, Portuguese Galp and Polish Orlen. The energy giants accused the American company of deliberately delaying the shipment in order to sell fuel on the spot market, where prices are significantly higher than contract prices during the energy crisis. Reuters estimated that by November 2023 alone, Venture Global had sold 200 cargoes with a total value of $18.2 billion and earned billions on the price difference between spot shipments and contract deliveries.

At the same time, Venture Global insisted that the plant had not yet started commercial operation due to force majeure circumstances. The US Federal Energy Regulatory Commission (FERC) supported the company: approved the reintroduction of hazardous liquids into the heat recovery steam generator at the Calcasieu Pass LNG plant and concluded that the owner of Venture Global has taken adequate steps to eliminate problems on its project to start commercial use.

Thus, the American regulator indirectly supported the company in a dispute with European clients that the project does not yet conduct commercial activities and may not fulfill long-term contracts.