According to the latest annual report released by Venture Global, British oil giant BP is seeking at least $3.7 billions in compensation from Venture Global through arbitration proceedings.

The report shows that BP claims to have suffered significant losses due to Venture Global's failure to fulfill its liquefied natural gas supply contract, and has now achieved a preliminary victory in the arbitration stage. The dispute arises from disagreements over the execution of a long-term cooperation agreement between the two parties. BP accuses Venture Global of breaching the contract in the delivery of natural gas from the Calcasieu Pass export project in Louisiana, forcing BP to purchase alternative resources from the spot market at higher prices. The arbitral tribunal's preliminary ruling supports BP's core claims, laying the foundation for determining the final compensation amount. Venture Global acknowledged in its annual report that the arbitration process is still ongoing, but emphasized that the company holds a different interpretation of the contract terms. The company stated it will continue to defend its rights through legal means while ensuring that its under-construction Plaquemines LNG project proceeds as planned. Industry observers point out that the outcome of this case may have a profound impact on global LNG long-term contract performance standards.