Bloomberg News

Repsol Cancels LNG Shipments to Argentina on YPF Seizure

May 18, 2012

Repsol YPF SA (REP), Spain’s largest energy company, canceled nine shipments of liquefied natural gas to Argentina because the government breached contracts following the seizure of oil producer YPF SA. (YPFD)

The shipments scheduled for delivery this year were canceled because state-owned energy company Energia Argentina SA failed to meet terms of the agreement, Repsol spokesman Kristian Rix said today in a telephone interview from Madrid, declining to provide details. Repsol “reserves itself the right to seek damages” for the cancellation of the shipments, he said.

Argentine President Cristina Fernandez de Kirchner ordered the seizure of 51 percent of YPF owned by Repsol on April 16, claiming the Madrid-based company didn’t invest enough to increase output. Repsol said it invested $20 billion in YPF since buying the company in 1999.

Argentina will need about 80 shipments of LNG in 2012 to meet its energy demand, 60 percent more than last year, Enarsa said in November.

Repsol had canceled one LNG shipment to the South American country last month following the nationalization of YPF.

To contact the reporter on this story: Rodrigo Orihuela in Rio de Janeiro at rorihuela@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net


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