Venture Global claims that Shell is running a campaign to damage its LNG operations.

U.S. LNG producer Venture Global accused Shell of conducting a "three-year campaign" aimed at harming its business after Shell contested an arbitration decision, as confirmed by a staff note from Reuters on Wednesday.

Venture Global has been facing arbitration claims from Shell, BP, and other European customers alleging breaches of contract after it sold LNG on the spot market during the 2022 energy crisis.

In an email from Venture Global's co-founders, Michael Sabel and Robert Pender criticized Shell's decision to challenge the unanimous ruling, labeling it "misguided," and affirmed that Venture Global would continue to defend itself.

Venture Global and Shell did not immediately reply to a request for comment from Reuters. The co-founders expressed that the decision should be a concern for Shell's board and its shareholders.

The company told employees, "To be very clear, this action relies on completely baseless claims and is an unfortunate continuation of their three-year campaign to damage Venture Global."

Initially reported by the Financial Times, this note was later confirmed to Reuters by a source from the company who wished to remain anonymous. It also pointed out recent supply agreements valued at $28 billion with clients in Greece, Japan, and Spain, indicating the company is on course to become the world’s largest LNG producer.

This month, Shell filed a challenge in New York state court in an effort to overturn the arbitration ruling. In a separate matter, Shell was ordered to cover Venture's legal fees after losing an arbitration case involving LNG supply claims.

Both cases revolved around Venture Global's inability to fulfill LNG deliveries under long-term contracts while selling cargoes on the spot market as prices rose following Russia's 2022 invasion of Ukraine.

In August, Venture Global secured a favorable ruling against Shell at the International Chamber of Commerce, but it lost a case against BP in October, which is now pursuing damages exceeding $1 billion.