Shearman & Sterling’s International Arbitration team obtained yet another outstanding award by securing the dismissal of a $3.6 billion claim for the Egyptian Natural Gas Holding Company (EGAS). Our client has now fully prevailed in all three arbitrations initiated in connection with the LNG Plant in Damietta, Egypt, in which claims exceeding $4 billion were brought against EGAS.
We represented EGAS in an ICC arbitration in Paris initiated by Spanish Egyptian Gas Company S.A.E. (SEGAS) and in two CRCICA arbitrations in Cairo and Madrid initiated by Union Fenosa Gas (UFG). These three arbitrations involved claims in excess of $4 billion. They arose under a tolling agreement governed by English law and a long-term gas supply agreement governed by Egyptian law. In a precedent-setting award on the English law of assignment rendered in 2016, the ICC Tribunal dismissed a $300 million claim brought by SEGAS against EGAS. In another ground-breaking decision on the application of the ICSID Convention issued in January 2020, the Madrid-seated CRCICA Tribunal equally dismissed the entirety of the $3.6 billion claim brought by UFG. Finally, in the Cairo seated CRCICA arbitration, the Tribunal dismissed a $10 million claim brought by UFG.
This victory showcases our International Arbitration team’s commitment to delivering results, and its formidable strength in Europe and the Middle-East.
For more information, see attached Global Arbitration Review article of 11 February 2020, Egyptian state entity defeats US$3 billion claim.
For more information, see attached Global Arbitration Review article of 2 June 2016, Assignment spells success for Egyptian gas supplier.