Sinolam International, a Singapore-based investment company focused on oil, gas, and power investments in emerging markets in Asia and Latin America, has disclosed the return of its multibillion-dollar lawsuit against AES Corporation to the Virginia state court. This legal challenge, which revolves around Panama’s liquefied natural gas (LNG)-to-power market, is connected with the cancellation of a license for a major gas-fired power generation project.
According to Sinolam, a U.S. Federal District Court in Virginia remanded its lawsuit against AES Corporation, originally filed on December 19, 2025, in the Circuit Court for Arlington County, back to the Virginia state court on April 24th, granting the firm’s request over the other player’s objections.
The Panamanian company claims to have successfully sought to argue the case in Virginia, where corporate entities are held highly accountable for ethical lapses. Sinolam is seeking more than $4 billion in the U.S. case.
Sinolam LNG Terminal and Sinolam Smarter Energy LNG Power Co. , which are energy infrastructure developers focused on LNG-to-power solutions in emerging markets, welcomed the $33.4 billion AES acquisition by the BlackRock-led consortium, as it could strengthen financing in the context of any future resolution of the litigation.
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As a result, the case will now move forward in Arlington County, where Sinolam highlights that key decisions were mostly orchestrated by AES management from the company’s global headquarters there.
The Panamanian player alleges AES, along with partner InterEnergy Holdings, worked to exclude it from participating in Panama’s LNG-to-power market, pointing to alleged misuse of confidential information, interference with contracts, and intimidation tactics.
The company emphasizes that it had already secured permits and commercial agreements for an LNG terminal and power project, but those plans could not progress due to “the unlawful actions of AES and InterEnergy, acting by themselves and through their joint venture, Group Energy.”
Kenneth Zhang , Sinolam’s CEO, commented: “We are pleased with the decision to return this matter to Virginia state court and appreciate the clarity it brings to the path forward. Sinolam remains confident in the strength of our claims and is committed to pursuing them vigorously in the appropriate forum.”