Shell's recent loss in New York arbitration court in its dispute with US LNG developer Venture Global has changed the way buyers and sellers are approaching the drafting of long-term LNG contracts. The case, in which Shell challenged the independent supplier's right to sell hundreds of spot cargoes to third parties during a prolonged commissioning phase at the Calcasieu Pass LNG project in Louisiana, revealed some of the vagaries of contract language that many are now seeking to better define. Buyers already have sought to tighten contractual language to avoid subjective interpretations around commissioning and commercial start dates. But the ruling has increased the urgency to standardize efforts to better allocate risks in contracting as a new wave of players enter the market — particularly in the US, where many developers are racing to reach final investment decisions. LNG contracts have been evolving for years as the sector has matured and portfolio players have become more prominent; market dynamics last decade changed the way take-or-pay provisions are applied, for instance. Shell's dispute with Venture Global arose from an unprecedented three-year commissioning period at Calcasieu Pass, during which time Venture Global said it could not declare commercial operations, thereby delaying the start date of Shell's 2 million ton per year, 20-year offtake contract. The 10 million ton/yr facility exported its first cargo in March 2022, but as Venture Global waited to make sure LNG could be produced reliably across all 18 small liquefaction trains at Calcasieu Pass — the point at which the operator said commercial operations would commence — it sold some 400 spot cargoes at much higher prices than Shell and several other term buyers had agreed to pay. Commissioning concluded in mid-April this year. Shell, which says it accepts the arbitration ruling, has called Venture Global's actions "deceitful." Venture Global maintains it has honored its contracts. Arbitration is ongoing with other Calcasieu Pass offtakers, including BP, Repsol, Galp, Orlen of Poland and Italy’s Edison.