Repsol launches arbitration case against Venture Global LNG

Alongside Repsol, Shell, bp and Edison have initiated similar proceedings against Venture Global LNG.

Shivam Mishra September 21 2023

Spanish energy company Repsol has initiated arbitration proceedings against Venture Global LNG over non-fulfilment of liquefied natural gas (LNG) contracts, reported Reuters, citing sources.

Repsol has asked the International Chamber of Commerce to urge Venture Global LNG to fulfil its LNG contracts or compensate it.

The arbitration case was accepted by the international tribunal earlier this month.

Repsol is the fourth European client to file an arbitration claim against the US gas company after it failed to deliver cargoes from a facility that has been operational for 18 months.

According to Venture Global LNG, the plant is not completely operational due to malfunctioning power supply equipment.

More than 200 cargoes, however, were sold by Venture Global LNG into the spot market at inflated rates.

Alongside Repsol, Shell, bp and Edison have initiated similar proceedings against Venture Global LNG.

These clients allege that the US company took advantage of the equipment issues to profit from the increase in the price of gas since the Russian invasion of Ukraine.

According to the source with knowledge of the situation, Venture Global LNG has informed Repsol that it will not be able to deliver cargoes until the end of 2024 or maybe early 2025.

One of the persons aware of the development claimed that Repsol is demanding Venture Global LNG supply the cargoes or pay more than $100m (€93.86m).

Requests for comment from a Venture Global LNG representative were not immediately answered. A request for response from a Repsol lawyer also went unanswered, reported the news agency.

bp and Shell launched separate arbitration cases against Venture Global LNG in July.

Before that, Italian company Edison had brought an arbitration case against Venture Global LNG for non-delivery of contracted LNG cargoes.

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