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Engie initiates arbitration procedure against Gazprom Export in Q4 2022 over gas shortfall

Engie said last autumn that it had managed through disruptions to Russian gas flows with no implication on physical supply, including LNG

MOSCOW, February 21. /TASS/. Engie initiated an arbitration procedure against Gazprom Export in early Q4 2022 over non-performance of its gas delivery obligations, the French energy company said in its annual report on Tuesday.

"At the beginning of the fourth quarter of 2022, Engie initiated an arbitration procedure against Gazprom Export LLC seeking, in particular to obtain recognition of Gazprom Export LLC’s non-performance of its gas delivery obligations towards ENGIE under long-term gas delivery agreements and payment of contractual penalties as well as compensation for damages resulting from this non-performance from Gazprom Export LLC," the report said.

"This arbitration procedure is due to the significant delivery shortages by Gazprom Export LLC to ENGIE as of mid-June 2022, followed by Gazprom Export LLC’s unilateral decision at the end of summer 2022 to reduce its deliveries to ENGIE due to a disagreement between the parties on the application of the agreements," the company added.

Engie said last autumn that it had managed through disruptions to Russian gas flows with no implication on physical supply, including LNG.

Gazprom Export, the export arm of the Russian gas holding Gazprom, said in late August 2022, that it failed to receive in full payments from Engie for gas supplied in July within the time stipulated and agreed on, due to which it notified the French company on complete suspension of deliveries starting September 1 and until the funds for supplied gas were received in full.

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