Spanish gas grid firm Enagas has been awarded $302 million in Arbitration over a pipeline dispute in Peru, the company announced on Monday, May 26. 

The decision, which the World Bank International Centre communicated for Settlement of Investment Disputes (ICSID) on Friday, May 23, increased the previous arbitration award following Enagas’s application, which requested the tribunal’s review of the previous ruling. 

As detailed in a Spanish stock market regulator filing, the revised award is $104 million higher than the original $194 million ICSID ordered Peru to pay Enagas on December 20, 2024, following a dispute over a pipeline the company constructed in the South American nation.

The tribunal also found that Peru's restriction on repatriating dividends from Enagas Internacional's investment in the Gasoducto Sur Peruano (GSP) pipeline, under Law No. 30737, violated its right to fair and equitable treatment.

However, Enagas has reaffirmed its intention to achieve a friendly settlement with Peruvian authorities on the enforcement of the pipeline dispute award.

The company has been maximizing its cash situation in Peru by keeping $65 million of deposits with Peruvian banks. That figure is equivalent to a letter of guarantee posted to Peruvian authorities under the controversial law.

Enagas said that the expense of the amended award, once calculated, will be included in its first-half 2025 accounts after full evaluation. 

Despite arbitration underway, Enagas reaffirmed its backing for its dividend strategy and investment programs currently in progress, including those on renewable hydrogen infrastructure key to European decarbonization efforts.