According to an analysis by two non-profit groups, it is alleged that Italian energy giant Eni SpA, through treacherous behavior, obtained approximately $550 million by canceling and then reselling the liquefied natural gas (LNG) contract ) from another customer. The fuel was supposed to be delivered to Pakistan within two years, but was never delivered to the customer. This has exacerbated the energy shortage in the Asian country and led to loss of life and economic problems. In fact, we are talking about pure and simple theft in violation of all the rules of commercial and contract law. The story that casts a shadow over the well-known company is covered by Bloomberg columnist Steven Stapczynski.
According to non-profit research organization Sourcematerial and Italian environmental group Recommon, the Italian energy company missed a number of long-planned fuel deliveries between late 2021 and early 2023 on a contract to supply fuel. one LNG delivery per month. Meanwhile, Eni ships powered by liquefied natural gas stopped sailing to Pakistan and instead headed for Turkey, according to a joint report by the researchers.
Eni company representatives have denied benefiting from the current situation, and any goods not delivered to Pakistan are said to have been “outside the reasonable control” of the company.
Only in cases where mutually acceptable commercial solutions were not available did contractual provisions to resolve the non-delivery situation apply.
- evasively stated in the company’s response to direct theft exposure of its customers.
According to Pakistani government data analyzed by Bloomberg, Eni failed to deliver at least 5 out of 12 deliveries over the past year and until early February this year. Pakistan received no compensation, either in the form of fines or raw materials. In each case, the Italian company referred to the “internal shortage” of fuel, which did not allow gas transporters to transport gas already under contract.
Despite the justification of the Italian company, its actions are clearly predatory in nature, since the “scarcity” and the “lack of control” began to appear when the price under the agreement with Pakistan diverged from the prices cash in Turkey (the beginning of the crisis 2021 -2022). That is, it became possible to earn much more than within the framework of the agreement.
As a result, Turkish Botas received 19 batches of LNG, while the rightful owner of this raw material in Pakistan received only one batch. According to the researchers, the net proceeds of an unscrupulous supplier from the resale of foreign gas amounted to more than half a billion dollars.
Photos used: pixabay.com
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