Exxon and Macquarie in US $ 11.7 billion fuel contract lawsuit

FILE PHOTO: An Exxon Mobil Corp emblem is seen on the Rio Oil and Fuel Expo and Convention in Rio de Janeiro, Brazil, September 24, 2018. REUTERS / Sergio Moraes

HOUSTON (Reuters) – Exxon Mobil Corp is suing Australia’s Macquarie Vitality in Texas court docket over $ 11.7 billion lawsuit over missed deliveries throughout final month’s winter freeze within the central United States .

Exxon pure fuel firm lawsuit stated large storm and state emergency declarations prevented it from fulfilling its provide dedication to Macquarie Vitality, the second largest U.S. fuel distributor .

Exxon is asking the Texas court docket to rule that the large storm, brought about when an arctic air mass swept by way of the central United States, was a pure catastrophe.

Such a transfer would permit Exxon to interrupt its contract with Macquarie with out penalty, quashing the Australian agency’s declare that Exxon cowl the wholesaler’s $ 11.7 billion in damages for missed deliveries.

US fuel demand and costs soared final month when freezing temperatures hit south Texas, the place 4.3 million properties misplaced energy.

A spokesperson for Macquarie in Australia declined instant remark. Exxon didn’t reply to an after-hours request for remark.

The chilly despatched level fuel to a West Texas hub at $ 203.50 per million British thermal items (mmBtu) on February 16. He additionally urged Texas and Louisiana to declare emergencies and direct fuel provides to state turbines.

Australia’s Macquarie was one of many greatest winners within the chilly snap, benefiting from report costs for pure fuel in the USA. It may acquire a revenue of $ 317 million from a weather-related fuel frenzy, analysts stated.

Macquarie had rejected Exxon’s personal declaration of a pure catastrophe, in accordance with the lawsuit, however the Australian firm later launched its personal power majeure assertion on the fuel it had agreed to provide Exxon to Texas.

Reporting by Gary McWilliams; edited by Jane Wardell

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