$4 billion in damages<\/u><\/a>\u00a0related to practices that affected their participation in Panama\u2019s LNG-to-power market.<\/p>\nThe project, which was designed to deliver reliable, efficient, and lower-emission electricity to support the country\u2019s growing energy needs, involved the development of a modern combined-cycle, gas-fired power plant, initially planned as a 325 MW facility and later expanded to 441 MW. \u00a0<\/p>\n
Designed to operate with high thermal efficiency and flexible dispatch capability, the gas-to-power project was intended to stabilize the Panamanian grid, respond to demand fluctuations, and complement other sources of generation.<\/p>\n
Sinolam claims to have made substantial investments to advance the project and prepare it for construction and operation, with the expectation that it would contribute meaningfully to the country\u2019s electricity supply and system stability.<\/p>\n
However, Panama reportedly abruptly cancelled the project\u2019s license through regulatory action taken in 2024 without prior notice that termination was under consideration and without allowing the company to be heard.<\/p>\n
The firm underlined: \u201cPanama\u2019s conduct violated fundamental obligations under the applicable investment treaty, including protection against arbitrary and discriminatory treatment and uncompensated expropriation.\u201d<\/em><\/p>\nIn light of this, Sinolam seeks full compensation for the losses it has suffered, including invested capital and the destruction of the project\u2019s value. The company currently values its loss at over $140 million.<\/p>\n
Kenneth Zhang<\/strong>, Sinolam\u2019s CEO, commented: \u201cAfter serious efforts to reach an amicable resolution, Sinolam has initiated arbitration proceedings under the Panama-Singapore free trade agreement. <\/em><\/p>\n\u201cThis is a last resort to protect our lawful investment and to uphold the principles of transparency, fairness, and respect for international commitments that underpin cross-border investment. This step reflects our confidence in a rules-based process.\u201d<\/em><\/em><\/p>\nOver the past 30 months, the government of Panama has allegedly cancelled several major foreign investment concessions owned by Asian companies valued at billions of dollars, as well as a large Canadian-owned copper mine.<\/p>\n
\u201cThis has eroded the trust of foreign investors in Panama. Sinolam remains committed to resolving the dispute through the ICSID arbitration process and looks forward to vindicating its rights,\u201d <\/em>emphasized the firm.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n Melisa Cavcic Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Home Fossil Energy $4 billion LNG lawsuit going ahead as arbitration starts March 23, 2026, by Melisa Cavcic Sinolam International, a Singapore-based investment company focused on oil, gas, and power investments in emerging markets in Asia and Latin America, has decided to move forward with a lawsuit related to Panama\u2019s liquefied natural gas (LNG)-to-power market<\/p>\n","protected":false},"author":1,"featured_media":903044,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[87,318],"tags":[11476],"class_list":{"0":"post-903043","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-billion","8":"category-lawsuit","9":"tag-bitcoins"},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/903043","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/comments?post=903043"}],"version-history":[{"count":0,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/posts\/903043\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media\/903044"}],"wp:attachment":[{"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/media?parent=903043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/categories?post=903043"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsycanuse.com\/index.php\/wp-json\/wp\/v2\/tags?post=903043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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