The , dependent on the World Bank, partially agreed with Enagás late this Friday night in the dispute that it had been maintaining for years with the Peruvian State over the GSP gas pipeline, whose construction was canceled in 2017. The manager The Spanish gas system will receive 194 million dollars (186 million euros) from the Peruvian treasury. An amount, however, much less than the 505 million dollars it requested.
“The award (…) condemns Peru to pay Enagás an amount of 176 million dollars, plus an annual interest of 1.44% (…), as well as 75% of the procedural costs,” it states. read in . The result of this award, partially favorable to the Spanish company, reduces uncertainty about the second process opened in Peru: that of Transportadora de Gas del Perú (TGP), from which it has not been able to repatriate dividends for years and where it has stranded around 400 million of euros.
This difference between the amount finally recovered and the amount they aspired to achieve, however, will be reflected in Enagás’ income statement for this year: in the relevant fact sent to the CNMV, the company itself recognizes that an accounting loss will have to be applied. of 311 million dollars (298 million euros).
“The company’s legal advisors are analyzing the award in detail and (…) reserves the right to request a rectification or clarification of the quantification of the recognized amount,” the Spanish company points out in the relevant fact. “Enagás has already expressed to the Peruvian authorities its willingness to reach an amicable agreement that allows the execution of this award in a manner that suits the interests of both parties.”
With rumors already flying about the possible ruling – Bloomberg published in the afternoon that the ICSID decision would arrive at the beginning of 2025 -, Enagás managed to escape the widespread red numbers on the Spanish stock market on Friday and ended the session with a rise of 1 .4%.
At stake was just over $500 million, roughly two years of . This figure corresponded to both the recovery of the financial investment and “the credit rights associated with the recovery of the guarantees executed as a result of the termination of the concession contract in GSP,” as read in .
Although the dispute between the manager of the Spanish gas system and the Latin American country dates back to 2017, when the GSP gas pipeline project was paralyzed—awarded three years earlier to a consortium in which the Spanish company participated—the dispute between Enagás and the State Peruvian by GSP. The Spanish energy company then claimed compensation from the South American country under the agreement for the promotion and reciprocal protection of investments that Madrid and Lima had signed.
On January 8, however, Enagás in a brief communication to the stock market regulator that “in accordance with the instructions of the arbitration court”, the preparation of the award was “in an advanced state.” He also pointed to the “first half” of the year as the probable date on which it will be announced. Although far from the estimated date then, the final ruling will come within 2024.
In July, with the new rejection already consummated and with the game still open, the CEO of Enagás, Arturo Gonzalo, anticipated in a conference with analysts a result favorable to the award “in the short term.” In its latest financial projections, the company expected to recover at least 236 million euros before the end of the decade, leaving the rest for later.
Although marginal, the result of the award also has an indirect impact on the Spanish treasury: the Spanish State has a 5% stake in Enagás.
