Shell Plc has lodged complaints with US regulators against Venture Global LNG (VGL) for failing to fulfill their contract to supply LNG cargoes. Similar supply disputes are also being faced by Nigeria LNG Ltd (NLNG), which is currently challenging an arbitral award demand order in a UK high court. The surge in disputes is believed to be a result of unexpected profits in the LNG market due to the Russia-Ukraine conflict, post-Covid market recovery, and high demand in Asia and European markets.
Shell Plc has filed complaints with US regulators against Venture Global LNG , the LNG exporter, for breach of contract to supply cargoes.The Nigeria LNG Ltd , meanwhile, is in a similar supply dispute and is currently in a UK high court to challenge an arbitral award demand order issued by an arbitration panel.
“This situation may have prompted numerous defaults on agreements, with major LNG suppliers opting to retain higher margins at the risk of lengthy litigations.” Shell and other European companies say they contracted with VGL but did not get their gas cargoes under long-term contracts, yet VGL has been selling gas from the plant for more than a year to others, costing its contracted customers billions in lost profit.
The cargoes, which were due for delivery between October 2020 and October 2021, have not been supplied.In pleadings made by NLNG in its particulars of claims to the High Court of Justice in England and Wales Commercial Court, the breach was confirmed by a final arbitration award dated 30th January 2023.
Shell Venture Global LNG Breach Of Contract Supply Dispute Nigeria LNG Ltd Arbitral Award LNG Market Russia-Ukraine Conflict Post-Covid Market Recovery High Demand Asia European Markets
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