CMS Grau’s, serving as co-counsel with Linklaters, successfully represented Enagás, a leading Spanish energy company, in its arbitration against the Republic of Peru before the International Centre for Settlement of Investment Disputes (ICSID).
The Tribunal awarded Enagás USD 194 million in compensation, including interest, as well as indicating 75% of the procedural costs were to be borne by Peru, marking a landmark decision as the largest monetary award ever rendered against Peru in ICSID history. This decision sets a significant precedent in the energy sector, underscoring the importance of safeguarding foreign investments and reinforcing the principles of fair treatment in cross-border infrastructure projects.
The dispute originated after the termination of the concession for the Southern Peruvian Gas Pipeline (GSP) project in 2017, a multi-billion project, in which Enagas was heavily invested.
The Tribunal found that Peru had violated the Spain-Peru Bilateral Investment Treaty (BIT) by expropriating Enagás’ investment and failing to uphold its obligation of fair and equitable treatment; all allegations of misconduct against Enagás were unequivocally dismissed.
The Tribunal also found the classification of Enagás under Category 2 of Law 30737, which restricted access to over USD 500 million in dividends related to a separate project, as wrongful.
The CMS Grau team was led by partners Carlos D. Hamann and Jesús Alejandro Abanto; with the participation of our partners Victor Farro, Michelle Barclay, and Miguel Viale.
