Spain's Endesa faces a $240 million claim for a LNG contract dispute

In a financial statement published on Tuesday, Endesa said that it faces claims for $240 million in an arbitration process relating to a review of the price of a long term contract of supply of liquefied gas.

It said that the amount could change during arbitration, which was launched in January by an unidentified LNG manufacturer, and whose conclusion is not expected until the end of the year.

Endesa announced the legal dispute in early February. At that time, it estimated an eventual loss of $300 million. The claim was presented in June.

Endesa, owned by the Italian energy giant Enel in 2023, was ordered to pay QatarEnergy $570 million over a dispute regarding a retroactive adjustment in price. In November, a Nigerian supplier filed a similar lawsuit seeking compensation of around $650 millions.

As part of the company's decarbonisation plan, it plans to gradually reduce its gas business and let expire contracts with Qatar and Nigeria, which end in 2025, and 2026 respectively. (Reporting and editing by Emma Pinedo and Kirby Donovan; Reporting by Pietro Lombardi)

(source: Reuters)