LAWSUIT FILED ALLEGING U.S. ENERGY GIANT AES AND PARTNERS COORDINATED A SCHEME TO MONOPOLIZE THE LNG-TO-POWER MARKET IN PANAMA AND THE REGION

Core Viewpoint - The lawsuit filed by Sinolam against AES Corporation and its partners alleges a long-term scheme to unlawfully exclude Sinolam from Panama's liquefied natural gas (LNG) market, stifling competition and securing monopoly control [1][2]. Group 1: Allegations of Unfair Practices - Sinolam claims that AES and its partners conspired to dismantle its LNG power generation and terminal projects in Panama using coercive tactics and improper influence over government regulators [2][4]. - The lawsuit alleges that AES executives directed strategies from their headquarters to delay Sinolam's permits and undermine its government approvals [5]. - InterEnergy is accused of misusing Sinolam's confidential information to form a joint venture with AES, which displaced Sinolam from the market [6]. Group 2: Impact on Competition and Market Control - Sinolam asserts that AES and InterEnergy's actions removed a key customer from the market, rendering Sinolam's long-term contracts worthless and destroying billions of dollars in expected economic value [7]. - The complaint states that AES now controls both major LNG-fueled power plants in Panama and the only operational LNG terminal, effectively eliminating competition and exerting significant control over energy supply in Central America and the Caribbean [10]. Group 3: Regulatory Manipulation - Sinolam alleges that AES leveraged political influence to obtain regulatory advantages, including expedited approvals for AES-aligned projects and the revocation of Sinolam's licenses [8][9]. - The lawsuit claims that the Panamanian government is a significant shareholder in AES's subsidiary, suggesting a conflict of interest and manipulation at the highest levels of government [9]. Group 4: Claims and Damages - The lawsuit includes ten claims, such as tortious interference with contract and business expectancy, and seeks compensatory damages exceeding $4 billion [11][12]. - Sinolam emphasizes that it followed all legal requirements and invested hundreds of millions of dollars, arguing that the actions of AES and its partners have harmed not only Sinolam but also the people of Panama and other countries facing higher energy prices [13].