Engie initiates arbitration with Gazprom Export due to shortages of gas

The French energy company Engie in the fourth quarter of 2022 initiated arbitration proceedings against Gazprom Export. She called the reason for the failure of the Russian side to fulfill its obligations for gas supplies. Engie expects to add penalty payments.

In reporting (.pdf) the French company is told that the arbitration procedure is “associated with significant undersupplies” of gas from Gazprom Export by mid-June. At the end of the summer, the Russian side unilaterally decided suspend deliveries, recalled at Engie.

“At the beginning of the fourth quarter of 2022, Engie initiated arbitration proceedings against Gazprom Export, seeking, in particular, the recognition of Gazprom Export’s failure to fulfill its obligations to supply Engie gas under long-term contracts and the payment of fines, as well as compensation for damages resulting from this failure “, the document says.

Russian gas accounted for about 17% of France’s needs. Engie received about 150 million cubic meters from Gazprom. m per month. June 17, 2022 GRTGaz, Engie’s subsidiary, reportedthat France no longer receives Russian gas through pipelines. August 30 Gazprom declaredwhich will cut Engie’s gas supplies from September 1 due to disputes over the application of contracts.

Laura Keffer