Naturgy has voluntarily withdrawn its lawsuit before the New York court against EDP for the award that condemned the gas company to compensate the electricity company with 198 million for breaches of a contract for the delivery of gas from Trinidad and Tobado in the year 2020, in the middle of the war in Ukraine, as can be seen from the notification registered by the company before the court this past Monday.
The measure caused the electricity company to have to go to the international spot market and therefore pay for the purchase of said gas at significantly higher prices. The relationship between both companies dates back to 2013 when EDP Clients and Naturgy signed an agreement by which the gas company was responsible for supplying them with natural gas produced in Trinidad and Tobago.
The problems caused by the war in Ukraine caused the usual supply to EDP Clients to be suspended, although the company demonstrated in the arbitration award that the supply to Naturgy’s combined cycle gas plants was not interrupted.
Given this situation, the federal judge in New York has now revealed the lack of basis for Naturgy’s allegations against the award that condemned the company to compensate EDP.
At the hearing held, the judge, Paul A Engelmayer, reiterated the correctness of the arbitration process carried out and urged it to be resolved peacefully.
Now, the company led by Francisco Reynés has decided to voluntarily cancel this procedure, after the judge made clear at the hearing held on October 28 the inconsistency and lack of foundation of the accusations on which Naturgy intended to base its claim. .
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