Spain’s Endesa Faces $240 Million Claim in LNG Contract Arbitration

Spanish utility Endesa is facing a $240 million claim in arbitration over a long-term LNG supply contract, adding to past legal disputes as the company scales back its gas business under decarbonization plans.

(Reuters) — Spanish power utility Endesa faces claims of $240 million as part of an arbitration process related to a price review of a long-term liquefied natural gas supply contract, it said in a financial report published on July 29.

The amount could change during the arbitration, launched by an unidentified LNG producer in January, the conclusion of which is not expected before the end of next year, it said.

Endesa disclosed the legal dispute in February, at which time it estimated a potential hit of $300 million. The claim was then presented in June.

Owned by Italian energy giant Enel, Endesa was in 2023 ordered to pay $570 million to QatarEnergy in a dispute over a retroactive price adjustment, while 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 decarbonization plans and will let contracts with Qatar and Nigeria that end in 2025 and 2026, respectively, expire.