03-06-08 Oil giant Petronas has filed a $ 100 mm lawsuit against India's Adani Energy for failing to comply with an agreement to import Liquefied Natural Gas (LNG).
Asean LNG, a subsidiary of Petronas, filed the multi-million dollar suit after Adani failed to obtain space at Gujarat's cargo terminal to take delivery of the LNG last year. Asean LNG then initiated an arbitration process against the company at the London Court of Internal Arbitration last January for damages.

Quoting sources, Adani officials tried to secure the cargo space in Gujarat, where there were two LNG terminals -- in Dahej and Hazira -- but failed to do so, which then put the company in precarious position.
Petronet LNG Ltd operated the Dahej terminal, while Shell managed Hazira, and the later confirmed that Adani approached them to import LNG but the company could not help because of non-availability of space. Both parties entered an agreement in August 2006 that was valid for three years.

The Gujarat-based company, which is under the Adani Group, is involved in production, distribution and transportation of energy. Adani Group is one of India's leading business entities, involved in infrastructure development and trading, with annual turnover of $ 4.3 bn.
The group set up the Adani Energy arm to implement its natural gas distribution network in two major cities in Gujarat -- Ahmadabad and Vadodara.