LONDON – Shell is starting arbitration hearings over the supply of liquefied natural gas from Venture Global’s Calcasieu Pass facility, Shell CEO Wael Sawan said on Thursday.
Shell and other companies including BP, Galp and Repsol have launched contract arbitration cases in the United States and Europe over the status of the plant and their inability to obtain contract cargoes for more than two years.
“Frustratingly, we have got no volumes against our term agreement which underpinned the financing for the project. We’re going through arbitration hearings this quarter,” Sawan said on a call with analysts.
Shell and others say they have lost billions of dollars in profit from gas promised under long-term contracts but it was not delivered. Venture Global LNG contends it has not fully commissioned the Louisiana plant.
(Reporting by Ron Bousso; Editing by Susan Fenton)
