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Investing.com -- Moody’s Ratings has affirmed Venture Global LNG, Inc.’s (VGLNG) B1 Corporate Family Rating and revised the outlook for both VGLNG and Venture Global Calcasieu Pass, LLC (VGCP) to stable from positive, affecting approximately $17 billion of debt securities.
The rating action follows a credit negative tribunal decision from the International Chamber of Commerce in arbitration proceedings between VGCP and BP Gas Marketing Limited. The arbitration panel found that VGCP breached obligations to declare commercial operation in a timely manner and failed to act as a reasonable and prudent operator.
BP is seeking damages exceeding $1.0 billion, with a separate damages hearing expected in 2026 followed by a final award. While any damages would legally be VGCP’s obligation, Moody’s expects VGLNG to be the primary funding source for such payments.
Seven customers, including BP, have filed arbitration proceedings against VGCP over alleged delays in achieving commercial operation. Two proceedings have been resolved without material financial impact, including one decided in VGCP’s favor. Four other proceedings remain pending with uncertain timelines.
VGLNG’s consolidated cash position was approximately $2.9 billion as of June 30, 2025. During the third quarter, its subsidiary Venture Global Plaquemines LNG (VGPL) exported 64 cargoes totaling 238.8 TBtu of LNG at a weighted average fixed liquefaction fee of $6.79/MMBtu, likely adding to VGLNG’s cash balance.
VGPL, which has become a primary cash flow source within the Venture Global family, is expected to export at least 190 cargoes totaling more than 700 TBtu over the next three quarters. The facility began LNG production in December 2024 and had 32 out of 36 LNG trains commissioning as of August 2025.
The outlook change acknowledges that the BP arbitration outcome was unexpected and creates uncertainty regarding potential damages, impact on pending arbitration, and funding sources within the Venture Global family.
Moody’s could consider upward rating movement upon greater clarity around potential damages in the BP arbitration, provided damages are limited to an amount that doesn’t weaken credit quality and is combined with continued sound operating performance at VGCP and VGPL.
Additional adverse rulings or prolonged uncertainty could lead to negative rating action, particularly if damages require issuing material incremental debt or if operating performance weakens at VGCP and VGPL.
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