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(Bloomberg) — Venture Global Inc.’s chief executive officer says arbitration cases filed by customers of the company’s first liquefied natural gas export plant could last for years.
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“The remaining arbitrations, if we were to settle or they were to run its full course, or I should say, if they run their full course, will take place over the next year or two or more,” Chief Executive Officer Mike Sabel said during an earnings call Monday.
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Venture Global shares surged as much as 13% after the company reported third-quarter revenue that exceeded analysts’ expectations and announced a long-term deal to sell gas to Spain’s Naturgy Energy Group SA.
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In August, an arbitration tribunal ruled in Venture Global’s favor in a case file by Shell Plc. Shell Plc. It lost a case last month to BP Plc.
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Another customer arbitration involving the company’s Calcasieu Pass facility was expected to be decided as soon as the end of the year, according to the company’s presentation slides. Rulings in the remaining four offtaker proceedings were not expected until 2026 at the earliest.
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Other Venture Global customers who lodged arbitration claims over the sale of LNG cargoes on the spot market include Polish utility Orlen SA, Portugal’s Galp Energia SGPS SA, Repsol SA, Edison International and Sinopec, as well as engineering company Kiewit in the building of the Louisiana facility.
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In the event Venture Global loses any remaining arbitration cases, the damage payments would be spread out over many years, Sabel said.
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“We remain confident that we’re going to do well on those. If they didn’t all go well, the occurrence of potential damages there would be spread out over a number of years,” Sabel said.
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At a time when the US already is doubling its export capacity and Qatar is building out a massive expansion, Sabel said that contrary to commentary about plateauing demand, global LNG infrastructure would need to nearly triple.
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“There certainly may be fluctuations in LNG prices over time, but we remain confident in underlying fundamental demand growth because of the increasing consumption of electricity around the world,” he said.
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(Updates with additional quote in second paragraph, adds share price in third paragraph.)
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English (US)