Spain’s Gas Natural sues Colombia for liquidating dysfunctional daughter company

Spanish energy multinational Gas Natural said Wednesday it would seek more than $1 billion in damages after Colombia liquidated one of its companies.

Colombia’s public service regulator liquidated Gas Natural’s Electricaribe last week after years of complaints and protests from locals in the Caribbean region over persistent outages.

“The company is not in a position to provide energy service with the quality and continuity that’s required,” regulator Jose Miguel Mendoza concluded.


Colombia orders liquidation of Gas Natural’s Electricaribe


The company said earlier this week it would seek damages before a World Bank affiliated arbitrary commission, but on Wednesday said it would seek compensation for made losses at the United Nations Commission on International Trade Law (UNCITRAL).

Gas Natural has an 85.38% stake in Electricaribe, which will be forcibly sold.

The Spanish government expressed regret over the Colombian decision last week and said it would support Gas Natural if it decided to pursue legal action, which it now has.

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