Shell Plc has lodged complaints with US regulators against Venture Global LNG (VGL) for allegedly breaching their supply contract.
Similarly, Nigeria LNG Ltd (NLNG) is embroiled in a supply dispute, challenging an arbitral award demand order in a UK high court.
An industry insider links these disputes to a surge in the LNG market, causing unexpected losses to highly profitable margins.
With LNG demand soaring amid global market dynamics, major suppliers are allegedly defaulting on agreements to retain higher margins, risking lengthy litigations.
Shell accuses VGL of limiting supply access while exporting billions of dollars worth of LNG. European companies claim VGL failed to fulfill long-term contracts, leading to billions in lost profits.
Shell seeks Federal Energy Regulatory Commission intervention to clarify delays in VGL’s commercial operations.
NLNG faces accusations of contract breach for failing to deliver 19 cargoes under a 2020 contract. Despite confirming the breach in arbitration, NLNG has not supplied the contracted cargoes, prompting legal action. NLNG, partly owned by Shell, Total, and Eni, faces scrutiny over its contractual obligations.
