Linklaters secures historic victory for Enagás in an ICSID arbitration against Peru
Linklaters’ International Arbitration team secured a significant victory on behalf of Enagás, a leading Spanish energy company, in its arbitration against the Republic of Peru. The Tribunal awarded Enagás US$ 194 million in compensation — the largest monetary award against Peru in ICSID history.
The dispute arose from the Southern Peruvian Gas Pipeline project, which was halted in 2017. Enagás, along with its consortium partners, had invested heavily in the project, which involved constructing a 1,000-kilometer pipeline with a multibillion-dollar investment.
The Tribunal vindicated Enagás’ rights and found that Peru violated the Spain-Peru Bilateral Investment Treaty by expropriating Enagas’ investment and breaching its fair and equitable treatment obligation. The Tribunal also declared that Enagás was wrongly included in Category 2 of Law 30737, by which Peru is currently withholding over US$ 500 million in Peru arising from Enagás’ investment in a different project in Peru, and further dismissed all of Peru’s unsubstantiated allegations of any wrongdoings involving Enagás.
The Tribunal awarded Enagás US$ 176 million, plus interest, totaling US$ 194 million, and 75% of the procedural costs to be borne by Peru. Diego Trillo, Enagás’ General Counsel, who led Enagás’ defense, stated that “This award is the result of many years of hard work by the Company’s different teams (i.e., legal, financial, communication, institutional relations, and subsidiaries), perfectly supported by a top-tier team of lawyers. The Tribunal’s decision vindicates Enagás’ rights and clears Enagás of any alleged wrongdoing in the GSP Project. I would like to commend the extraordinary work of the Linklaters’ team, which has been assisting us in this complex dispute for over seven years. The award is the culmination of an extraordinary joint effort.”
The Linklaters team was led by Partners Christian Albanesi (Washington, D.C.) and Borja Fernandez de Troconiz (Madrid), and included Counsel Roberto Sanchez (Washington, D.C.), and Senior Associate Mateo Noseda Zorrilla (Washington, D.C.).
Linklaters has a world class International Arbitration practice. The team, including over 40 partners and counsel, acts in complex investment and commercial arbitrations across the globe. The firm’s integrated international arbitration offering has depth and breadth of experience in working on high-profile international arbitrations across the U.S., Latin America, Europe, the Middle East, Africa and Asia.
