LNG-EU asks Mitsubishi to pay $700m in compensation

PT LNG Energi Utama (LNG-EU) has reported Mitsubishi Corporation to the anti-monopoly agency KPPU for violating the business competition law and demands the Japanese company to pay US$700 million in compensation for the loss of business opportunities resulting from its alleged unfair practices, Kompas. Com reported on Saturday.

"We demand Mitsubishi to pay compensation of US$700 million not only for the business costs, but also due to the loss of business opportunities,? LNG EG managing director Normal Marshall told reporters after a hearing with KPPU executives on Friday.

He, however, said that his company was still open for negotiation and ready to settle the problem amicable if Mitsubishi wanted to do so.

LNG-EU accused Mitsubishi of being unfair in when taking part in the tender to build a liquefied natural gas (LNG) in Senoro, Central Sulawesi. According to Norman, Mitsubishi won the project despite the fact that its bid of between US$700 and $800 million was higher than the US$500 million offered by LNG-EU.

According to Norman, the way Mitsubishi won the project was also questionable because the value of the project was raised to $1.4 billion immediately after it was named as the winner of the tender.

Because the Japanese company?s unfair practices, LNG-EU suffered losses of between US$20 and $50 million, he added. (*)