HomeNewsEdison confident of positive outcome in Venture Global LNG arbitration

Edison confident of positive outcome in Venture Global LNG arbitration

5/29/2025
  • Venture Global says has met all contractual obligations
  • Edison aims to increase its LNG imports from U.S. in future

Italian utility Edison is confident of a positive outcome in an arbitration involving U.S. liquefied natural gas (LNG) supplier Venture Global, which is expected by the end of the year, its chief executive said on Thursday.

Edison is one of several European energy companies, including Shell, bp and Galp, that have filed arbitration claims saying Venture Global deliberately failed to fulfil its supply contracts, dragging its feet when commissioning one of its plants so it could profit from higher spot prices.

Commissioning, or making sure a new plant's systems are functioning as intended, can take months, but the process dragged on at Calcasieu Pass due to a number of unforeseen circumstances, Venture Global has said.

Edison's CEO Nicola Monti, speaking on the sidelines of a company presentation in Milan, said: "From our point of view, we think we are totally right... We think there is very clear evidence."

Venture Global follows all contractual obligations and has begun delivering cargoes to all of its long-term customers, including Edison, a Venture Global spokesperson said on Thursday.

"We continue to remain confident in our position in the arbitration proceedings, which are confidential," the spokesperson told Reuters.

Edison received its first cargo of liquefied natural gas (LNG) from Venture Global in mid-May, two and a half years after it had initially agreed under a long-term contract signed with the U.S. supplier in 2017.

Italy's biggest LNG importer will receive 1.4 Bm3 of the gas from Venture Global each year under the agreement.

Venture Global began operations at its first plant in Calcasieu Pass three years ago, and is now on track to become the largest U.S. LNG company if it gives the financial green light later this year to its third LNG project CP2.

Venture Global's stock price was down 1.5% in early trade at $11.80.

Edison also imports LNG from Qatar, Libya, Algeria and Azerbaijan and it is interested in increasing supply from both Qatar and the United States as the two countries bring additional capacity to the market, Monti said.

New contracts with U.S. LNG suppliers could start in 2028–2029, Edison's Chief Financial Officer Ronan Lory, who was also speaking on the sidelines of Edison's presentation, said.

"Italy used to be dependent on Russia for 40% of its gas imports and now Algeria is its privileged supplier, there is room for more diversification," Monti said.

Between 2023 and 2024, Edison spent €1.2 B ($1.36 B) of the €10 B earmarked for investment by 2030 to expand renewable and flexible generation, value-added services for customers, and its gas and green gas portfolio.

($1 = €0.8853)

 

 

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