Arbitration Win Extends Venture Global LNG Win Streak

NEW YORK, NEW YORK – JANUARY 24: Bob Pender, Executive Co-Chairman & Co-Founder of Venture Global LNG, (L) and Mike Sabel, Co-Founder & CEO of Venture Global LNG, (C) celebrate after ringing the opening bell at the New York Stock Exchange during morning trading on January 24, 2025 in New York City. Stocks opened mixed a day after the S&P hit a new record high following President Donald Trump’s call to lower interest rates and crude prices. (Photo by Michael M. Santiago/Getty Images)

Getty Images

Big LNG export firm Venture Global emerged victorious in its arbitration case with Shell on Tuesday, August 12 in a case involving claims it had failed to deliver liquefied natural gas under long-term contracts starting in 2023. The arbitration panel’s favorable ruling frees the company from potential liability in the case, extending a string of positive developments related to its U.S. LNG operations.

“We are pleased with the tribunal’s determination which reaffirms what Venture Global has maintained from the outset–the plain language in our contracts, mutually agreed upon with all of our customers, is clear. We have consistently honored these agreements without exception,” the company said in a statement. “The world needs more abundant, low-cost energy and our company looks forward to playing a leading role in meeting that demand for years to come.”

A Streak Of Good News For Venture Global’s LNG Projects

The news of the arbitration ruling came on the same day Venture Global reported second quarter earnings which exceeded expectations. Revenues for the months of April through June came in at $3.1 billion with net income of more than $400 million.

Earlier in August, the company received a positive decision from the U.S. Department of Energy when Energy Secretary Chris Wright signed a final authorization for additional gas exports to non-free trade agreement (non-FTA) countries from the Calcasieu Pass project in Cameron Parish, Louisiana.

Signaling the event as a return to “regular order” on LNG exports following 2024’s year-long pause by former President Joe Biden on permitting related to the industry, Sec. Wright said, “Thanks to President Trump’s leadership, the United States has made massive leaps in unleashing LNG dominance. Today’s authorization is another reminder that this administration is committed to expanding the supply of abundant, affordable, and secure American energy. The data over the past 10 years of U.S. LNG exports clearly shows that we can lead the world in energy production while lowering energy costs here at home.”

A month ago, on July 16, Venture Global announced a new deal to beef up its supply commitments, finalizing a long-term, 20-year agreement with Italian national oil company ENI to export 2 million metric tonnes per year of LNG from its CP2 LNG terminal. The CP2 project is currently under development, with deliveries set to commence by the end of 2027.

Less than 2 weeks later, on July 28, Venture Global was able to announce the greenlighting of construction at CP2 after it was able to secure $15.1 billion in capital financing for the project. It was the largest such announcement in the U.S. LNG sector thus far in 2025. Once completed, CP2 will have an expected production capacity of 28 million metric tons per annum (MTPA), which would make Venture Global one of the two largest LNG exporters in the U.S. along with Cheniere Energy.

“We are extremely proud to have taken FID on our third greenfield project in under 6 years with over $80 billion in capital markets transactions executed to date,” said Venture Global CEO Mike Sabel said in a release. “This success would not be possible without the dedication and relentless execution of the entire Venture Global team. Our significant early investments and work on the project make CP2 the most advanced project at FID to date. This project, fully owned by Venture Global and our shareholders, is expected to deliver reliable American LNG to the world beginning in 2027.”

A Bright Road Ahead For U.S. LNG

No sector of the U.S. energy economy has benefitted more from the sea change in energy policy brought to bear since January 20 by President Donald Trump and his key energy-related appointees, like Sec. Wright, Interior Sec. Doug Burgum, and EPA Administrator Lee Zeldin. After spending most of 2024 in a state of uncertainty under the yoke of Biden’s permitting “pause” – which many feared would become permanent policy in a Kamala Harris presidency – this is an industry now in full boom mode again.

Already the world’s largest supplier of LNG, the U.S. industry seems certain to continue to expand amid exploding global demand and a newly favorable policy environment. Thus far in 2025, Venture Global has been one of the biggest winners in the LNG sweepstakes.