The argument worked in Shell’s arbitration case against Venture Global, where the court sided with the latter. It did not work with another arbitration case, brought against the U.S. LNG producer by BP, which is asking for over $1 billion in compensation. The total sought in damages from Venture Global by its long-term clients is over $4 billion. The company has warned that any unfavorable court ruling would lead to contract cancellations and faster repayment of loans taken out to build its LNG facilities, from the long-term buyers of the commodity.
