AGL 38.54 Increased By ▲ 0.97 (2.58%)
AIRLINK 129.50 Decreased By ▼ -3.00 (-2.26%)
BOP 5.61 Decreased By ▼ -0.03 (-0.53%)
CNERGY 3.86 Increased By ▲ 0.09 (2.39%)
DCL 8.73 Decreased By ▼ -0.14 (-1.58%)
DFML 41.76 Increased By ▲ 0.76 (1.85%)
DGKC 88.30 Decreased By ▼ -1.86 (-2.06%)
FCCL 35.00 Decreased By ▼ -0.08 (-0.23%)
FFBL 67.35 Increased By ▲ 0.85 (1.28%)
FFL 10.61 Increased By ▲ 0.46 (4.53%)
HUBC 108.76 Increased By ▲ 2.36 (2.22%)
HUMNL 14.66 Increased By ▲ 1.26 (9.4%)
KEL 4.75 Decreased By ▼ -0.11 (-2.26%)
KOSM 6.95 Increased By ▲ 0.10 (1.46%)
MLCF 41.65 Decreased By ▼ -0.15 (-0.36%)
NBP 59.60 Increased By ▲ 1.02 (1.74%)
OGDC 183.00 Increased By ▲ 1.75 (0.97%)
PAEL 26.25 Increased By ▲ 0.55 (2.14%)
PIBTL 5.97 Increased By ▲ 0.14 (2.4%)
PPL 146.70 Decreased By ▼ -1.70 (-1.15%)
PRL 23.61 Increased By ▲ 0.39 (1.68%)
PTC 16.56 Increased By ▲ 1.32 (8.66%)
SEARL 68.30 Decreased By ▼ -0.49 (-0.71%)
TELE 7.23 Decreased By ▼ -0.01 (-0.14%)
TOMCL 35.95 Decreased By ▼ -0.05 (-0.14%)
TPLP 7.85 Increased By ▲ 0.45 (6.08%)
TREET 14.20 Decreased By ▼ -0.04 (-0.28%)
TRG 50.45 Decreased By ▼ -0.40 (-0.79%)
UNITY 26.75 Increased By ▲ 0.35 (1.33%)
WTL 1.21 No Change ▼ 0.00 (0%)
BR100 9,806 Increased By 37.8 (0.39%)
BR30 29,678 Increased By 278.1 (0.95%)
KSE100 92,304 Increased By 366.3 (0.4%)
KSE30 28,840 Increased By 96.6 (0.34%)
Business & Finance

Exxon and Macquarie in $11.7mn US lawsuit over gas contract

  • Exxon is asking the Texas court to rule that the massive storm, caused when an arctic air mass swept the central United States, was a natural disaster.
  • US gas demand and prices soared last month when freezing temperatures hit as far south as Texas, where 4.3 million homes lost power.
Published March 4, 2021

HOUSTON: Exxon Mobil Corp is suing Australia's Macquarie Energy in a Texas court to avoid paying $11.7 million for missed deliveries during last month's winter freeze in the central United States.

The lawsuit, filed by Exxon's natural gas business, said the massive storm and state declarations of emergencies prevented it from fulfilling its supply commitment to Macquarie Energy, the second largest US gas marketer.

Exxon is asking the Texas court to rule that the massive storm, caused when an arctic air mass swept the central United States, was a natural disaster.

Such a ruling would allow Exxon to break its contract with Macquarie without a penalty, overriding a demand from the Australian company that Exxon cover the wholesaler's $11.7 million in damages for missed deliveries.

US gas demand and prices soared last month when freezing temperatures hit as far south as Texas, where 4.3 million homes lost power.

A Macquarie spokesperson in Australia declined to comment on the lawsuit.

"We are confident we complied with all our obligations under terms of the contract," Exxon spokesman Casey Norton said.

The cold sent spot gas at a west Texas hub to $203.50 per million British thermal units (mmBtu) on Feb. 16. It also prompted Texas and Louisiana to declare emergencies and direct gas supplies to the states' power generators.

Australia's Macquarie was one of the largest winners in the cold snap, benefiting from record US natural gas prices. It could collect a $317 million profit from the weather-related gas binge, analysts said.

Macquarie had rejected Exxon's own declaration of a natural disaster, the lawsuit said, but the Australian company later issued its own force majeure declaration over gas it had agreed to provide Exxon in Texas.

Comments

Comments are closed.