German utility Uniper has to pay 550 million euros ($602 million) to a European energy firm following a ruling by an arbitration court over a long-term liquefied natural gas (LNG) contract concluded prior to the company’s spin-off in 2016.
State-owned Uniper announced this in a statement on Sunday but it did not reveal the name of the company or any other details regarding the contract.
Uniper has been notified on November 24 of an award against a subsidiary in arbitration proceedings under the rules of the International Chamber of Commerce which began in early 2021.
“The proceedings between the Uniper subsidiary and a European energy company relate, inter alia, to the pricing provisions of a long-term agreement for the supply of liquified natural gas (LNG), concluded prior to the spin-off of Uniper in 2016 and which has since expired,” the firm said.
“A payment to the opposing party of an estimated EUR 550 million related to the retroactive re-pricing of the long-term agreement would be due under the terms of the award,” Uniper said.
The firm said that additional payment would have a full impact on the company’s annual results.
Uniper added it was analyzing the reasoning of the decision and “reviewing all possible avenues of legal recourse against the award.”
Last year, Germany agreed to buy Fortum’s stake in gas and LNG importer, Uniper, to stabilize the firm and prevent an energy shortage.
Uniper and its partners developed Germany’s first FSRU-based LNG import facility in Wilhelmshaven.
German LNG terminal operator Deutsche Energy Terminal operates this facility and the Brunsbüttel terminal, as well as the upcoming FSRU-based terminals in Stade and Wilhelmshaven.
