NY court refuses to overturn arbitration ruling that favored Venture Global over Shell

By Curtis Williams, Jonathan Stempel and Marwa Rashad

HOUSTON/NEW YORK/LONDON, March 2 (Reuters) - A New York state judge on Monday rejected British oil major Shell's SHEL.L request to throw out an arbitration award that favored Venture Global VG.N in a dispute over the American company's alleged improper sale of liquefied natural gas.

Justice Joel Cohen of the state Supreme Court determined no additional discovery was warranted because of the substantial deference the court must give to arbitral decisions. The ruling effectively brings an end to Shell's challenge of Venture Global's failure to provide it with LNG cargoes for years after the plant first produced the supercooled gas.

"We welcome the New York State Supreme Court’s complete denial of Shell’s petitions to overturn the unanimous arbitral award issued in favor of Venture Global in August 2025," a Venture Global spokesperson said on Monday.

Shell did not immediately reply to a request for comment.

Several energy companies including Shell, Repsol REP.MC and BP BP.L began filing arbitration claims in 2023 against Venture Global, which operates LNG export facilities in Louisiana. The LNG producer was accused of wrongfully profiteering by selling gas at higher prices on the spot market following Russia's invasion of Ukraine, instead of honoring its contracts.

Shell and Repsol lost their cases, while BP won its case in October. BP's damages have not yet been determined.

The Shell case centered on shipments from Venture Global's Calcasieu Pass facility in Louisiana. It accused Venture Global of delaying the expected October 2022 start date for the facility's commercial operations in an attempt to sell gas elsewhere at market prices.

In court papers, Shell said Venture Global concealed communications from the three arbitrators that explained its activities related to the facility. Venture Global countered that Shell's allegations of fraud and misconduct were a baseless and improper effort to undo a "full and fair" arbitration.

The Calcasieu Pass facility began commercial operations in April 2025. Shell has a separate long-term contract with Venture Global's Plaquemines facility, also in Louisiana.