Spain's Endesa faces new arbitration over LNG contract dispute
The Spanish power utility Endesa faces a new arbitration over a price review for a long-term contract to supply liquefied gas (LNG), Chief Financial Officer Marco Palermo announced on Thursday.
Palermo, who spoke to reporters during the presentation of 2024 results, said that a supplier, whom he didn't identify, had filed the lawsuit in January. There is no claim at this time, he added.
He said that Endesa estimated the potential impact of the price hike demanded by its counterpart to be around $300 million.
The company, which is owned by the Italian energy giant Enel has been involved in several similar cases over the past few years.
It was ordered in 2023 to pay QatarEnergy $570 million over a dispute regarding a retroactive adjustment to price.
In November, the court dismissed a similar lawsuit filed by a Nigerian provider seeking compensation of around $650,000,000.
Jose Bogas, the Chief Executive Officer of the company, said that as part its decarbonisation plan it plans to gradually reduce its gas business and let expiring gas contracts with Qatar and Nigeria in 2025 and respectively 2026.
(source: Reuters)
