CFE, Goldman Sachs Near Natural Gas Dispute Resolution

CFE and Goldman Sachs have reportedly reached a settlement to resolve a legal dispute over a natural gas purchase contract dating back to 2021. Under the agreement, CFE would pay Goldman Sachs US$300 million, according to Energy 21.  

The dispute originated when CFE allegedly breached clauses in a natural gas supply contract following a significant price surge caused by a winter storm that struck Texas in early 2021. The extreme price increase led to a conflict between both parties. However, CFE has not issued an official statement regarding the matter.  

Goldman Sachs initially sought US$400 million in damages, but both parties reportedly settled for US$300 million, closing the case before the International Court of Arbitration, as reported by Bloomberg.  

The sudden spike in natural gas prices resulted in substantial debt for CFE, escalating tensions between the two parties and ultimately leading to an arbitration process.