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Venture Global shares slide after BP wins arbitration case over LNG cargoes

Venture Global's shares fell 17% on Friday in premarket trade after BP won an arbitration case against it over its failure in delivering liquefied gas as part of a long-term contract that was supposed to begin in late 2022.

Venture Global reported on Thursday that the International Chamber of Commerce International Court of Arbitration had found it in breach of its obligations to declare that commercial operations at the Calcasieu Pass Plant had started promptly and to act as "a reasonable and prudent operator."

BP, Shell Edison and Galp filed arbitration claims accusing U.S. firm of profiteering, by selling LNG cargoes for commissioning at higher spot-market prices rather than long-term contract prices.

This ruling is a blow to Venture Global which previously won the arbitration against Shell.

Elvira Scotto, an analyst at RBC Capital Markets, said that the result of the BP arbitration was "a bit surprising" and could rekindle investors' concerns about the pending arbitration proceeding.

BP wants to recover damages in excess of $1 billion, plus interest, fees and costs. This will be decided at a separate court hearing, expected to take place in 2026.

Venture Global shares are down 48% from their January 24 debut. Their market capitalization is now around $30.5 billion. (Reporting and editing by Sriraj Kalluvila in Bengaluru)

(source: Reuters)