NewsPolish firm Orlen takes on Venture Global in court over unfulfilled LNG contract

Polish firm Orlen takes on Venture Global in court over unfulfilled LNG contract

Orlen President Daniel Obajtek
Orlen President Daniel Obajtek
Images source: © PAP | Radek Pietruszka

11:53 AM EST, December 23, 2023

According to Bloomberg's information, sourced from anonymous individuals, it is clear that Orlen wants Venture Global to start LNG deliveries immediately as per the contract. The Polish company anticipates that the arbitration case will span one to two years.

We have officially reached out to Orlen for their comment regarding the dispute with the American company. Once we receive a response, we will make Orlen's position public.

In recent years, Poland has sealed numerous contracts for LNG with the USA and other global suppliers, as a precursor to cutting off ties with Russian exports. The LNG terminal on the Baltic Sea, in addition to a new gas pipeline connection with Norway, ensured the supply after Russia curbed gas flow last year.

The Polish company, which also has a separate agreement with Venture Global, set to launch in 2026, estimates the value of lost profits to be several billion zlotys. They have not disregarded the prospect of compensation from Venture Global, contingent on when deliveries under the contract commence - as reported by Bloomberg.

Operational Issues

Previously, other European companies, including Shell and BP, targeted Venture Global in lawsuits. They declare that Venture Global failed to fulfill its long-term LNG delivery agreements.

Venture Global disclosed that it has not yet made any shipments due to operational difficulties associated with the initial phase of investments. Deliveries under long-term contracts are expected to start towards the end of 2024 - as announced by the CEO Mike Sabel in December.

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