U.S. liquefied natural gas (LNG) producer Venture Global has accused Shell of orchestrating a “three-year campaign” to damage its business. This significant allegation emerged after Shell recently appealed an arbitration loss against Venture Global. Reuters confirmed this information on Wednesday, citing a staff note that detailed the ongoing dispute.
Allegations of Business Damage
Venture Global specifically claims Shell has actively sought to harm its operations for three years. This serious accusation follows recent legal developments between the two energy companies. Shell’s appeal of an arbitration ruling seemingly prompted Venture Global to make this public statement, intensifying their dispute.
Ongoing Arbitration Disputes
Beyond this specific accusation, Venture Global currently faces several arbitration claims. Shell, BP, and other European buyers initiated these separate legal proceedings. These parties allege breaches of contract by the U.S. producer, creating a complex web of legal challenges.
Contract Breach Claims
The alleged contract breaches reportedly stem from Venture Global’s commercial decisions. Specifically, the company sold LNG on the spot market. Buyers contend this action violated their existing long-term agreements for LNG supply. Consequently, they are seeking remedies through arbitration.
Industry Context
The energy sector closely monitors these disputes. Such cases highlight the complexities of long-term LNG supply contracts and market dynamics. Industry observers watch how these arbitration outcomes might influence future agreements and relationships between producers and buyers.
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