GAS

Epic shareholder could face bankruptcy threat on gas price case

In what could have interesting implications for Australia's pipeline business, a major American stakeholder in Perth-based Epic Energy, faces potential bankruptcy should US regulators find the company manipulated natural gas prices during the Californian power crisis.

According to American media reports, California is seeking nearly $US4 billion in refunds and penalties from Houston-based El Paso Corporation, which has a 33% stake in Perth-based Epic Energy.

Californian regulators accuse the company of withholding gas during that State's energy crisis two years ago, sparking a 20-fold increase in prices.

"Their survival is at stake," said one American analyst from Raymond James & Associates. "If the commission decides El Paso was manipulating prices, then the company will find it very difficult to win any lawsuit brought against them by the state of California, shareholders or bondholders."

El Paso said in a filing this month that the company faces 11 separate lawsuits alleging that it helped inflate energy prices in California. Some of the suits seek triple damages.

El Paso's shares have fallen 81 percent this year, wiping out almost $US22 billion in market value. Last Friday, the stock fell US3c to $US8.52 in New York Stock Exchange trading.

TOPICS:

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

editions

ENB Cost Report 2023

ENB’s latest Cost Report findings provide optimism as investments in oil and gas, as well as new energy rise.

editions

ENB Future of Energy Report 2023

ENB’s inaugural Future of Energy Report details the industry outlook on the medium-to-long-term future for the sector in the Asia Pacific region.

editions

ENB Cost Report 2021

This industry-wide report aims to understand current cost levels across the energy industry

editions

ENB Social Licence Report 2021

In its second year, this research now includes trends and new findings surrounding impacts and responses as the energy industry seeks to secure and maintain a social licence to operate.