Shell Presses U.S. Court Over Venture Global LNG Arbitration

Shell is asking a New York court to review whether communications between Venture Global and its independent engineer were improperly withheld during arbitration over LNG cargoes from the Calcasieu Pass facility.

(Reuters) - Shell is asking a New York court to review potential communications between Venture Global and an independent engineer that Shell says were central to its arbitration loss over LNG deliveries from the Calcasieu Pass export terminal, according to a court hearing transcript.

The dispute stems from Shell’s failed arbitration last year over delayed LNG cargoes from Venture Global’s Calcasieu Pass project. Shell alleges that Venture Global delayed declaring commercial operations while selling LNG into the spot market and that the arbitration panel relied heavily on testimony from an independent construction-monitoring engineer.

At a January 12 hearing, Shell asked the court to determine whether emails, draft reports or other communications exchanged in 2022 between Venture Global and the independent engineer existed but were not disclosed during arbitration. A Venture Global representative identified the engineer as Lummus Consultants, which had not previously been named publicly in the case.

Venture Global disputes Shell’s claims, saying it produced all requested documents and that arbitrators rejected Shell’s discovery requests multiple times during the 27-month arbitration process. The company argues Shell is attempting to relitigate an unfavorable ruling that involved extensive evidence and testimony.

The presiding judge expressed skepticism that undisclosed communications, if they exist, would be sufficient to overturn the arbitration award, noting the volume of material already reviewed by the panel. A decision is pending.

Shell has said Venture Global failed to meet long-term LNG supply obligations, while Venture Global maintains that technical issues at Calcasieu Pass delayed full commercial operations.