Venture Global Loses First Round To Galp: Tribunal Finds Calcasieu Pass Was Late Declaring Commercial Operations
A $170 million liability cap applies to the final award, and the damages hearing is anticipated for 2027 or 2028, the company said.
An arbitration tribunal ruled against Venture Global's Calcasieu Pass unit on Wednesday, finding it breached its supply contract with Galp Trading by not declaring commercial operations on time, according to an 8-K filed Thursday. The company says the final award will be capped at $170 million.
What the 8-K says
The International Chamber of Commerce's International Court of Arbitration told Venture Global Calcasieu Pass on Wednesday that it had issued a partial final award. The tribunal, acting primarily as a majority, found the unit breached its duty to declare the commercial operation date, known as COD, in a timely manner under the long-term LNG sales and purchase agreement with Galp.
One of the three arbitrators dissented from the majority's finding on that breach.
Remedies will be set at a separate damages hearing. It has not been scheduled, but the company anticipates it in 2027 or 2028, with a final award to follow.
What it changes for holders
Based on the award's terms, the final award will be subject to the agreement's $170 million seller aggregate liability cap, the filing says. That is the one number the 8-K gives for exposure; no damages figure has been set.
Venture Global said it is "disappointed" and believes the ruling contradicts findings in earlier arbitrations involving Shell and Repsol, as well as facts verified by independent third parties and regulators overseeing the project. It is "evaluating all available options" and will "continue to vigorously defend its position."
The company also said the award does not change the contract's terms as performed. It pointed to twenty cargos delivered to Galp since commercial operations began on April 15, 2025.
The filing points readers to a risk factor in its annual report: losing legal proceedings with customers could mean substantial payments, or termination of certain post-COD sales agreements, which could accelerate all debt for the relevant project. In Thursday's pre-market data, the stock was $13.05, down 3.40% (market data).
What to watch
Whether Venture Global challenges the ruling, and when the damages hearing gets a date.
The company has said it anticipates the damages hearing in 2027 or 2028, so the dollar answer is likely more than a year away.
Sources
- 8-K Filing — Venture Global, Inc. (VG) — SEC EDGAR
