QIC sues EnergyAustralia

The Iona Gas Plant.

The Iona Gas Plant.

Queensland Investment Corp (QIC) is seeking nearly $1 billion in damages from EnergyAustralia over the sale of Lochard Energy.

According to the Australian, QIC alleges that EnergyAustralia didn’t disclose capacity problems at the Iona underground gas storage facility.

QIC lodged proceedings for damages of $967 million in the Supreme Court of Victoria which said EnergyAustralia made “express contrary representations” despite being aware with the capacity issues at the Iona plant.

“We have a track record of acquiring assets and enhancing value through active management,” said a QIC spokesperson.

“In this case, key information was known by the vendor but not disclosed, and should have been.

“This nondisclosure had a direct impact on our ability to assess the investment at the time of the sale.”

EnergyAustralia said in a statement that it would “vigorously defend the action”.

QIC acquired the Iona facility in October 2015 from EnergyAustralia for $1.78 billion.

The facility supplies gas into the Victorian market via the 144 km, 500 mm South West Pipeline, and into the South Australian market via the 707 km, 350–450 mm South East Australia Gas (SEA Gas) Pipeline.

Located adjacent to the Otway Gas Plant, Iona is connected to the nearby Minerva Gas Plant via the SEA Gas Pipeline.

The plant includes two gas processing trains and compression equipment to process gas from the storage reservoirs and the offshore Casino development.

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