By Curtis Williams, Jonathan Stempel and Marwa Rashad

HOUSTON/NEW YORK/LONDON, March 2 (Reuters) - A New York state judge on Monday rejected British oil major Shell's request to throw out an arbitration award that favored Venture Global in a dispute over the American company's alleged improper sale of liquefied natural gas.

Justice Joel Cohen of the state Supreme Court said no additional evidence-gathering was warranted, and the court owed "substantial deference" to arbitral decisions.

"Shell’s suggestion that (Venture Global's) counsel made misrepresentations to the tribunal is pure speculation," Cohen wrote. "Absent clear and convincing evidence of fraud or misconduct, and none has been presented, Shell’s motion falls at the first hurdle."

The decision effectively ends Shell's challenge of Venture Global's failure to provide it with LNG cargoes for years after the plant first produced the supercooled gas.

"We recognize that courts are reluctant to challenge arbitral awards but we did believe in the strength of our case," Shell said in a statement. "We are disappointed in the outcome.”

A spokesperson for Venture Global said it welcomed the court's "complete denial" of Shell’s effort to overturn the August 2025 arbitral award.

Several energy companies including Shell, Repsol and BP began filing arbitration claims in 2023 against Venture Global, which operates LNG export facilities in Louisiana.

The LNG producer was accused of wrongfully profiteering by selling gas at higher prices on the spot market following Russia's invasion of Ukraine, instead of honoring its contracts.

Shell and Repsol lost their cases, while BP won its case in October. BP's damages have not yet been determined.

The Shell case centered on shipments from Venture Global's Calcasieu Pass facility in Louisiana. Shell accused Venture Global of delaying the expected October, 2022 start date for the facility's commercial operations in an attempt to sell gas elsewhere at market prices.

The Calcasieu Pass facility began commercial operations in April, 2025.  Shell has a separate long-term contract with Venture Global's Plaquemines facility, also in Louisiana.

(Reporting by Curtis Williams in Houston; Editing by Nathan Crooks, Chris Reese and Raju Gopalakrishnan)