A New York state judge has denied Shell’s request to vacate an arbitration award that favored U.S. liquefied natural gas producer Venture Global in a long-running supply dispute, according to Reuters.
Justice Joel Cohen of the New York State Supreme Court ruled that there was no basis to reopen the case or gather additional evidence. He said courts owe “substantial deference” to arbitral decisions and found no proof of fraud or misconduct.
“Shell’s suggestion that (Venture Global’s) counsel made misrepresentations to the tribunal is pure speculation,” Cohen wrote. He added that, without clear and convincing evidence of wrongdoing, Shell’s motion could not proceed.
The ruling effectively ends Shell’s legal challenge related to LNG cargoes it said were withheld for years after Venture Global’s plant began producing gas.
Shell said in a statement that it was disappointed with the outcome but acknowledged that courts are generally reluctant to overturn arbitration awards. Venture Global welcomed what it described as the court’s “complete denial” of Shell’s effort to set aside the August 2025 award.
Dispute tied to LNG sales after Ukraine invasion
The broader conflict stems from arbitration claims filed in 2023 by several energy companies, including Shell, Repsol and BP, against Venture Global, which operates LNG export facilities in Louisiana.
The companies accused Venture Global of selling liquefied natural gas on the spot market at elevated prices following Russia’s invasion of Ukraine, rather than honoring long-term supply contracts.
Shell’s case focused on shipments from Venture Global’s Calcasieu Pass facility in Louisiana. Shell alleged that the company delayed the October 2022 start date for commercial operations so it could redirect cargoes to the spot market at higher prices.
The Calcasieu Pass facility ultimately began commercial operations in April 2025. Shell also holds a separate long-term contract tied to Venture Global’s Plaquemines facility, also located in Louisiana.
While Shell and Repsol lost their arbitration cases, BP reportedly prevailed in its claim, though damages have not yet been finalized.
The court’s decision reinforces the high threshold required to overturn arbitration awards and marks another chapter in the ongoing disputes over LNG contracts during a period of extreme volatility in global energy markets.
