Endesa's CEO Optimistic About $585 Million Nigerian LNG Contract Arbitration

(Reuters) — Endesa CEO Jose Bogas said on Wednesday he was optimistic about the outcome of a $585 million arbitration case related to a price review of a long-term liquefied natural gas (LNG) supply contract in Nigeria.

"We believe we have a strong case, which leads us not to set aside any provision. That said, we have opened talks with Nigeria to see if we can reach an agreement," Bogas told reporters during a news conference to discuss the Spanish power utility's annual profit.

The arbitration case had already been disclosed in the company's financial documents, but the counterparty was unnamed, and this is the first time that Endesa has said it is related to LNG from Nigeria.

Earlier on Wednesday, Chief Financial Officer Marco Palermo said the disputed contract was for 1 billion cubic meters of gas a year, expiring in 2026.

In November, Endesa was ordered to pay $570 million following an arbitration ruling over a liquefied natural gas (LNG) contract dispute with QatarEnergy.

The company, which had also expressed optimism about the arbitration with QatarEnergy, had said earlier on Wednesday the lower demand for natural gas and retail price decline had hurt its profitability in 2023.

Related News

Comments

{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}