Exxon sues Macquarie over missed deliveries
Exxon Mobil is suing Macquarie Energy, hoping that a Texas court will rule that last month’s winter freeze was a natural disaster.
Such a ruling would allow Exxon to break its contract without paying a penalty for failing to deliver natural gas to Macquarie, which is the second largest gas marketer in the U.S.
The lawsuit says the massive storm and state declarations of emergencies had prevented Exxon Mobil from fulfilling its supply commitment.
Macquarie had demanded that Exxon cover the wholesaler’s $11.7 million in damages for missed deliveries.
Macquarie was one of the biggest winners in the cold snap that stretched as far south as Texas, where over 4 million homes lost power. The freezing temperatures caused gas demand and prices to soar in the U.S., and analysts said Australian-based Macquarie could reap a $317 million profit from a weather-related gas binge.
A Macquarie spokesman declined immediate comment. Exxon did not reply to a request for comment.
Macquarie shares closed nearly 1% lower in Australia. Exxon opened higher in early trading Thursday.
