Sinolam files $4 billion lawsuit against AES over Panama LNG market
Sinolam is suing AES and its partners for $4 billion, alleging anticompetitive practices that eliminated them from Panama’s LNG market.Summary
Panamanian companies Sinolam LNG Terminal and Sinolam Smarter Energy LNG Power Co. have filed a $4 billion lawsuit against AES Corporation and its partners, including InterEnergy Holdings, in Arlington County Circuit Court in Virginia. The lawsuit alleges AES engaged in anticompetitive practices to remove Sinolam from Panama’s liquefied natural gas (LNG) market, including misusing confidential information and improperly influencing government regulators. Sinolam claims to have secured approvals and commitments for an LNG-fired power plant and terminal in Colón, Panama, before facing interference from AES, who allegedly leveraged political connections and confidential information obtained through a non-disclosure agreement. The complaint states that AES now controls both major LNG-fueled power plants and the only operational LNG terminal in Panama. Sinolam is seeking damages for tortious interference with contracts and conspiracy. Kenneth Zhang, Sinolam’s CEO, stated the company “invested hundreds of millions of dollars, followed every legal requirement, and played by the rules.” This case highlights Panama’s growing importance as an LNG hub following the Panama Canal expansion. Recent news also indicates AES reported third-quarter earnings of $0.75 per share, exceeding analyst expectations, and received an upgrade from Jefferies.
(Source：Investing Us)