Italy's Eni and Dutch gas supplier GasTerra have become embroiled in a bitter multi-billion euro row over gas prices, with a ruling against Eni last month in an arbitration case triggering a new round of counterclaims and even the seizure of assets.
Since the early 2010s, dozens of arbitration claims have been made by European gas buyers unhappy with the price they were charged according to the terms of their long-term supply contracts with exporters.
Eni and GasTerra have been through the arbitration process before -- a ruling in 2012 related to the price Eni paid for GasTerra gas also went against the Italian company.
Eni began the latest arbitration proceedings in a bid to win a revision of the price charged by GasTerra under a long-term supply agreement between 2012 and 2015.
GasTerra said on Thursday Eni's claims totaled some Eur2 billion. "The arbitration tribunal dismissed Eni's claims for a price revision as of October 2012 in their entirety," the Dutch company said.
But the court ruling on June 23 has now led to a new dispute over what -- if anything -- Eni owes GasTerra as a result of the decision.
"Pending the arbitration, GasTerra provisionally -- and for invoicing purposes only -- charged a lower price as of October 2012 under an agreement between GasTerra and Eni," it said.
"Following the full dismissal of Eni's price decrease claims in the arbitration award, GasTerra has charged Eni the difference between the provisional price and the contract price, which resulted in an additional amount of Eur918 million including interest," it said.
ENI REFUSAL, ASSET SEIZURE
Eni is refusing to pay up, however.
"Eni does not agree with GasTerra's interpretation and has rejected GasTerra's request for payment, seeking good faith discussions to agree on the extent of the 2012 price revision," Eni said.
In retaliation, GasTerra has already launched a new arbitration case against Eni to recover what it sees as cash owed to it and has seized Eni assets in the Netherlands.
"Eni has informed GasTerra that it will not pay the additional amount," GasTerra said.
"GasTerra disagrees with Eni's position and has initiated arbitration proceedings to collect the amount due by Eni. To secure its claims, GasTerra has seized Eni's assets in the Netherlands following leave to do so for an amount of Eur1.01 billion from the President of the Amsterdam District Court," it said.
Eni has pledged to fight back.
"Eni considers that GasTerra's request for payment is unfounded and will take all necessary measures to protect its rights," it said.
"With respect to the interim measures obtained by GasTerra, Eni is considering its position, pending the outcome of the arbitration proceedings. Eni will further seek compensation for any damages it incurs, due to GasTerra's legal actions," it said.
