Spectra Energy Corp. said Wednesday it has agreed to settle outstanding litigation stemming from a contract dispute between Citrus Trading Corp. and Spectra LNG Sales, formerly Duke Energy LNG Sales Inc.
The Citrus litigation was a liability assumed by Spectra Energy in connection with the spinoff of the former natural gas assets of Duke Energy Corp. Spectra Energy became a stand-alone company earlier this month when it assumed Duke Energy's natural gas businesses.
Spectra Energy will pay Citrus $100 million to settle a contract dispute that arose in connection with a 1998 contract regarding the purchase and resale of liquefied natural gas (LNG).
In December Spectra Energy Capital LLC, formerly Duke Capital LLC, had announced it would establish a reserve of $45 million associated with this liability. As a result of the settlement, the Houston-based company said the reserve has been increased to $100 million. Spectra Energy admitted no liability or fault for the matters alleged in the lawsuit.
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