Venture Global, set to become the top U.S. exporter of liquefied natural gas, is confident it will win the remaining arbitration cases on supply from its first plant in Louisiana after a victory over Shell, Bloomberg reports.
The company on Tuesday won its arbitration proceeding with Shell related to the timing of contractual shipments from the Calcasieu Pass plant, which came more than three years after the project began exporting the fuel. The shares jumped as much as 15% on Wednesday.
“We remain confident of similar outcomes in the balance,” Chief Executive Officer Mike Sabel said on an earnings call Wednesday. The contracts and their terms are all “very similar” and “straightforward,” as are the facts around the plant construction and completion, even if the cases are heard in separate tribunals, he said.
The win over Shell as it pertains to selling LNG on the spot market is important for the company—it’s the first resolution in a series of cases that have pitted the LNG upstart against some of the world’s biggest energy companies, including BP, Polish utility Orlen SA, Portugal’s Galp Energia SGPS SA, Spain’s Repsol SA, Edison International and China’s Sinopec.
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