On December 9, 2025, Venture Global filed a formal response to Shell’s claims that the company had engaged in fraud during a recent LNG arbitration. The filing marks the first time Venture Global has publicly countered Shell’s accusations, a move that could intensify an already contentious legal battle that began with Shell’s arbitration loss in August 2025.
Shell’s allegations center on alleged fraud and misrepresentation of contractual obligations and shipment timelines. Shell cites third‑party testimony that Venture Global used to conceal the postponement of commercial operations at its Calcasieu Pass facility, and claims that the company misled customers by selling “commissioning cargoes” on the spot market while the plant was still in the commissioning phase. Shell also accuses Venture Global of breaching arbitration confidentiality provisions by publicly disclosing details of the dispute.
Venture Global rejects the fraud allegations, arguing that all contractual terms were met and that the “plain language” of its agreements was clear and mutually agreed upon. The company maintains that it has honored its commitments, citing the successful delivery of LNG from its Plaquemines and Calcasieu Pass projects. Venture Global also accuses Shell of violating confidentiality by releasing arbitration documents to the public, a claim that could expose Shell to counter‑claims for damages.
The legal dispute comes at a time when Venture Global reported strong Q3 2025 results: revenue rose to $3.3 billion, up 10% year‑over‑year, and adjusted EBITDA reached $1.2 billion, a 15% increase from the prior quarter. Despite the earnings beat, the company lowered its full‑year adjusted EBITDA guidance to $6.35 billion–$6.50 billion from a previously higher range, citing lower LNG prices and the need to set aside reserves for legal contingencies. Venture Global’s debt load remains substantial at $33.9 billion, and the company recently issued $3 billion in senior secured notes, adding to concerns about its leverage profile.
Investors have expressed heightened concern over the legal uncertainty and potential financial penalties that could arise from the arbitration. The dispute also raises reputational risks that could affect Venture Global’s ability to secure new long‑term contracts, especially as the company’s strategy of selling commissioning cargoes on the spot market has already drawn criticism from other customers such as BP and Repsol.
Management emphasized confidence in its contractual approach. Co‑founder Michael Sabel said, “We are pleased with the tribunal’s determination, which reaffirms that the plain language in our contracts is clear.” He added that the company will continue to “deliver, build and sign new customers” while maintaining focus on operational efficiency. Shell’s spokesperson, meanwhile, reiterated that the company believes Venture Global “wrongfully earned” $3.5 billion due to the delay in commercial operations and that the company’s actions “constitute fraud.”
The outcome of this arbitration could set a precedent for how LNG contracts are interpreted, particularly regarding the sale of commissioning cargoes during the commissioning phase. A ruling in favor of Shell could compel Venture Global to pay significant damages and could prompt other LNG buyers to demand stricter contractual language. Conversely, a ruling in favor of Venture Global would reinforce its current strategy and could embolden the company to pursue similar arrangements at future projects. Either way, the dispute underscores the delicate balance between rapid market entry and contractual obligations in the volatile LNG market.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.