El Paso Corporation Announces Litigation Settlement

El Paso Corporation Announces Litigation Settlement

El Paso Corporation, announced the conclusion of a settlement with Spectra Energy Corp. (Spectra) to resolve outstanding litigation brought by Citrus Trading Corp. against Spectra LNG Sales, formerly Duke Energy LNG Sales, for $100 million.

El Paso’s subsidiary, Southern Natural Gas (SNG), owns a 50-percent equity interest in Citrus Corp., owner of Florida Gas Transmission Company and Citrus Trading Corp. As a result of the settlement, the board of directors of Citrus declared a special dividend, which will result in SNG’s receiving cash proceeds of approximately $28 million.

The agreement resolves a dispute over the early termination of a 1988 contract for the purchase and sale of liquefied natural gas (LNG) that was imported from Algeria through the Lake Charles LNG Terminal and delivered to Florida Gas Transmission Company.

“El Paso values its relationship with Spectra and is pleased to have reached an amicable resolution of this long-standing dispute,” said Jim Yardley, El Paso Pipeline Group President.

El Paso Corporation provides natural gas and related energy products in a safe, efficient, and dependable manner. The company owns North America’s largest natural gas pipeline system and one of North America’s largest independent natural gas producers. For more information, visit http://www.elpaso.com.

Source: El Paso Corporation

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