ICSID rules in favor of Perupetro in LNG dispute

In a dispute with Camisea consortium over royalty payments tied to LNG reloads, World Bank’s International Center for Settlement of Investment Disputes ruled in favor of Perupetro on May 21. 

PeruPetro filed for arbitration against Pluspetrol of Argentina in 2011, claiming that 10 cargoes shipped from Peru’s liquefaction facility at Pampa Melchorita to LNG terminals on the US Gulf coast had been re-exported to Asia and that royalties had to be paid based on the final destination of the cargoes, not the reload terminal.

According to Perupetro, Argentinian operator Pluspetrol was responsible for the cargoes under its contract and, as Argus reports, Aurelio Ochoa, Perupetro’s director at the time when the case was filed, set the award at $50 million.

Pluspetrol is part of the Camisea consortium that includes Hunt Oil of the US, SK Energy of South Korea, Sonatrach of Algeria, Tecpetrol of Argentina and Repsol of Spain.

LNG World News Staff; Image: Perupetro