Shell plc filed a formal response on December 10, 2025 to allegations raised by Venture Global, a short‑report firm, in a liquefied natural gas (LNG) arbitration case. The filing, submitted late that day, outlines Shell’s rebuttal to claims that the company engaged in fraudulent conduct during the arbitration and asserts that the allegations are unfounded and lack supporting evidence.
Shell’s response centers on Venture Global’s alleged delay of the Calcasieu Pass LNG plant’s start‑up to avoid contractual delivery obligations. Shell commissioned a study that estimated Venture Global had “wrongfully earned” approximately $3.5 billion by selling cargoes on the spot market after Russia’s invasion of Ukraine, rather than fulfilling long‑term contracts. The study’s findings are cited as evidence of fraud and misleading statements to the tribunal.
Venture Global denies any fraud, arguing that Shell has provided no evidence and that a third‑party witness did not testify to written communications confirming a delay strategy. The firm also accuses Shell of breaching arbitration confidentiality by sharing information with other counterparties, a counter‑claim that adds a layer of legal complexity to the dispute.
The filing follows Shell’s loss in an August 2025 arbitration ruling and BP’s win in October 2025, giving Shell a basis to challenge the decision and seek damages. Shell’s legal team argues that the arbitration outcome was tainted by the alleged fraud and that the ruling should be overturned to protect the company’s contractual rights and financial interests.
Management indicated a willingness to pursue a commercial resolution. An email from a Shell executive, sent on the same day the response was filed, expressed interest in finding a settlement for both the Calcasieu Pass and Plaquemines projects, suggesting a potential de‑escalation path that could mitigate reputational and financial exposure.
The dispute has already impacted Venture Global’s market perception, with the company’s shares falling 22% since Shell’s challenge and trading near an all‑time low. Analysts note that the legal exposure could affect Shell’s LNG portfolio, future contract negotiations, and regulatory scrutiny, underscoring the broader implications for both firms’ strategic positioning in the global LNG market.
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