Spain's Endesa faces new arbitration over LNG contract dispute
Spanish power utility Endesa is facing a new arbitration related to a price review of a long-term LNG supply contract, Chief Financial Officer Marco Palermo said on Thursday.
A supplier, which he did not identify, launched the case in January and there's no specific claim for now, Palermo told reporters at the presentation of the company's 2024 results.
Endesa estimates the potential hit from the price increase demanded by the counterpart at around $300 million, he said.
It is the latest of several cases the company, owned by Italian energy giant Enel ENEI.MI, has faced in recent years.
In 2023, it was ordered to pay $570 million to QatarEnergy in a dispute over a retroactive price adjustment.
In November, a court rejected a similar case filed by a Nigerian supplier seeking around $650 million in compensation.
The company plans to progressively reduce its gas business as part of its decarbonisation plans and will let gas contracts expire with Qatar and Nigeria that end in 2025 and 2026 respectively, Chief Executive Officer Jose Bogas said.
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