TotalEnergies Rejects Venture Global as LNG Supplier

ByIrina Slav– Feb 06, 2025, 2:40 AM CST

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Venture Global is currently embroiled in a dispute with Shell, BP, and several other European energy majors after it refused to start deliveries to them under long-term contracts in favor of selling its LNG on the spot market, making billions, according to the clients.

The LNG exporter used a legal loophole that allowed it to delay the official commissioning of its Calcasieu Pass LNG facility, which was when the long-term contracts would come into effect.

BP, Shell, Repsol, and Eni are suing Venture Global, with Shell last September accusing Venture Global of earning some $3.5 billion from selling LNG on the spot market while it should have supplied it under its long-term contracts. This, Shell alleged, caused serious LNG sourcing difficulties for one unnamed company that had to resort to sourcing the gas from five other U.S. producers, incurring additional costs of $1.5 billion.

BP, Shell, and Spain’s Repsol, along with two other European energy companies, were foundation buyers for the Calcasieu Pass facility, meaning they provided Venture Global with the money to build the place in Louisiana in exchange for a commitment from the company to supply them with certain volumes of LNG over a long-term period.

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