Alunorte seeks USD 69M in arbitration against New Fortress Energy over gas delays
A major customer of billionaire Wes Edens’ New Fortress Energy Inc. has taken the company to arbitration, alleging delays in natural gas deliveries and seeking nearly 376 million reais in damages.
Image for representatioanl purpose
The dispute was disclosed in a regulatory filing on Friday. According to the company, Alunorte Alumina do Norte do Brasil SA — one of the world’s largest alumina producers — initiated arbitration in the first quarter. Alunorte is demanding 375.7 million reais (USD 68.9 million as of 30 June) over what it says were delays in gas supplies at the Barcarena import terminal.
New Fortress Energy, which has been under pressure from mounting debt and cash flow constraints tied to project delays, said it intends to contest the claims. In its filing, the company stated that it does not believe the damages sought are supported by its contract with Alunorte and that no losses had been accrued as of June 30.
The arbitration adds to the challenges facing Edens’ energy venture, which has struggled with setbacks including holdups at its liquefied natural gas project in Mexico.
In 2021, New Fortress signed a 15-year agreement with Alunorte to supply 29.5 trillion British thermal units of gas annually. Both companies declined to comment on the ongoing proceedings.
Grow with
AL Circle
