Spain's Endesa faces $1.8-billion claims in LNG contract disputes
MADRID, July 27 (Reuters) - Spain's power utility Endesa (ELE.MC) faces claims worth around $1.83 billion in disputes related to price reviews of long-term liquefied natural gas (LNG) supply contracts.
The cases had been already disclosed, but in its first-half earnings report released on Wednesday the company updated the amount of the claims from the previously announced $1.41 billion. In both proceedings, Endesa, a unit of Italian energy giant Enel, said it believes it has a strong case.
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In one case, stemming from a price review launched by Endesa, "the respondent, a liquefied natural gas production company, has filed a counter-claim requesting payment of approximately $1,270 million," according to the report, up from a previously announced $1 billion.
"The company considers this counterclaim to be unfounded and untimely, and its external legal advisors are of the opinion that the likelihood of the counterclaim being upheld is remote," it added.
The amount could change until the conclusion of the arbitration, expected in the third quarter of the year, the company said.
The other claim amounts to $557 million and the proceeding is expected to close in the second quarter of next year. Endesa had originally said the claim was for $411 million.
"The company believes that this claim is not sufficiently substantiated," it said.
An Endesa spokesperson declined to comment, pointing to the comments included in the report. (Reporting by Pietro Lombardi, editing by Inti Landauro and Kim Coghill)