Posted by: jamaljaafar | June 3, 2008

Petronas sues India’s Adani Energy for RM322m

NEW DELHI, June 3 — Oil giant Petronas has filed a US$100 million (RM322 million) lawsuit against India’s Adani Energy Ltd for failing to comply with an agreement to import liquefied natural gas (LNG).

Asean LNG Co Ltd, a subsidiary of Petronas, filed the multi-million-dollar suit after Adani failed to obtain space at Gujarat’s cargo terminal to take delivery of the LNG last year, reported the Minit, a businesss newspaper published by India’s Hindustan Times.

Asean LNG then initiated an arbitration process against the company at the London Court of Internal Arbitration last January for damages.

Quoting sources, the paper said Adani officials tried to secure the cargo space in Gujarat, where there were two LNG terminals – in Dahej and Hazira – but failed to do so, which then put the company in precarious position.

Petronet LNG Ltd operated the Dahej terminal, while Shell Corp managed Hazira, and the latter confirmed that Adani approached them to import LNG but the company could not help because of non-availability of space.

Both parties entered an agreement in August 2006 that was valid for three years.

The Gujarat-based company, which is under the Adani Group, is involved in production, distribution and transportation of energy.

Adani Group is one of India’s leading business entities, involved in infrastructure development and trading, with annual turnover of US$4.3 billion (RM13.85 billion).

The group set up the Adani Energy arm to implement its natural gas distribution network in two major cities in Gujarat – Ahmedabad and Vadodara.

The Minit obtained the details from the draft red herring prospectus filed by Advanni Energy with the Securities and Exchange Board of India. — Bernama


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