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Venture Global Secures 20-Year LNG Deal with Tokyo Gas Amid Shell Legal Battle

MarketDash Editorial Team
12 days ago
Venture Global locked in another major long-term contract with Tokyo Gas, adding to its impressive deal streak this year, even as its legal fight with Shell over contract breaches intensifies.

Venture Global, Inc. (VG) shares climbed Wednesday after the company announced a new long-term liquefied natural gas deal with Tokyo Gas Co., Ltd. It's the latest in what's been a banner year for new contracts, even as the company finds itself in an increasingly messy legal battle with Shell PLC (SHEL).

The Tokyo Gas Agreement

Under the terms of the Sales and Purchase Agreement (SPA), Tokyo Gas will purchase 1 million tons of LNG per year from Venture Global for 20 years, with deliveries beginning in 2030. That's a substantial commitment, and it brings Venture Global's total new SPAs signed in just the past six months to 7.75 million tons per annum for 2025.

CEO Mike Sabel framed the deal in bilateral trade terms, noting that "the agreement will contribute significantly to the US-Japan balance of trade over the duration of the SPA, providing Japan with affordable, reliable American LNG." It's the kind of long-term contract that gives LNG exporters visibility into future cash flows and helps justify the massive capital investments these projects require.

The Shell Situation Gets Messier

On the same day, Venture Global accused Shell of waging a three-year campaign to undermine its business, according to Reuters. The accusation stems from Shell's ongoing appeal of an arbitration ruling over alleged LNG contract breaches.

Earlier this month, Shell filed an appeal in the New York Supreme Court challenging its loss in the arbitration dispute with Venture Global. The core issue centers on Venture Global's alleged failure to supply LNG under long-term contracts that began in 2023.

Back in August, Venture Global announced a favorable tribunal ruling in its arbitration with Shell, stating the decision confirms its contracts have been consistently honored as agreed upon with all customers. Last month, the company also issued a partial final award in a separate arbitration with BP Gas Marketing Limited related to LNG sales under a long-term SPA from the Calcasieu Project.

Recent Financial Performance

Earlier this month, Venture Global reported third-quarter fiscal 2025 revenue of $3.33 billion, slightly beating the consensus estimate of $3.30 billion. However, earnings per share of 16 cents missed the street view of 23 cents, suggesting the top-line strength didn't fully flow through to the bottom line.

Price Action: VG shares were trading higher by 0.29% to $6.910 premarket at last check Wednesday.

Back to News

Venture Global Secures 20-Year LNG Deal with Tokyo Gas Amid Shell Legal Battle

MarketDash Editorial Team
12 days ago
Venture Global locked in another major long-term contract with Tokyo Gas, adding to its impressive deal streak this year, even as its legal fight with Shell over contract breaches intensifies.

Venture Global, Inc. (VG) shares climbed Wednesday after the company announced a new long-term liquefied natural gas deal with Tokyo Gas Co., Ltd. It's the latest in what's been a banner year for new contracts, even as the company finds itself in an increasingly messy legal battle with Shell PLC (SHEL).

The Tokyo Gas Agreement

Under the terms of the Sales and Purchase Agreement (SPA), Tokyo Gas will purchase 1 million tons of LNG per year from Venture Global for 20 years, with deliveries beginning in 2030. That's a substantial commitment, and it brings Venture Global's total new SPAs signed in just the past six months to 7.75 million tons per annum for 2025.

CEO Mike Sabel framed the deal in bilateral trade terms, noting that "the agreement will contribute significantly to the US-Japan balance of trade over the duration of the SPA, providing Japan with affordable, reliable American LNG." It's the kind of long-term contract that gives LNG exporters visibility into future cash flows and helps justify the massive capital investments these projects require.

The Shell Situation Gets Messier

On the same day, Venture Global accused Shell of waging a three-year campaign to undermine its business, according to Reuters. The accusation stems from Shell's ongoing appeal of an arbitration ruling over alleged LNG contract breaches.

Earlier this month, Shell filed an appeal in the New York Supreme Court challenging its loss in the arbitration dispute with Venture Global. The core issue centers on Venture Global's alleged failure to supply LNG under long-term contracts that began in 2023.

Back in August, Venture Global announced a favorable tribunal ruling in its arbitration with Shell, stating the decision confirms its contracts have been consistently honored as agreed upon with all customers. Last month, the company also issued a partial final award in a separate arbitration with BP Gas Marketing Limited related to LNG sales under a long-term SPA from the Calcasieu Project.

Recent Financial Performance

Earlier this month, Venture Global reported third-quarter fiscal 2025 revenue of $3.33 billion, slightly beating the consensus estimate of $3.30 billion. However, earnings per share of 16 cents missed the street view of 23 cents, suggesting the top-line strength didn't fully flow through to the bottom line.

Price Action: VG shares were trading higher by 0.29% to $6.910 premarket at last check Wednesday.