Mexico’s state utility Comisión Federal de Electricidad (CFE) is set to enter international arbitration over a payment dispute with Goldman Sachs Group Inc. 

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“We are in an international arbitrage process,” a CFE spokesperson told NGI’s Mexico GPI. “CFE thinks it has solid and sufficient arguments to gain a favorable ruling.”

A CFE trading subsidiary reportedly owes Goldman $400 million for natural gas trades that occurred when prices soared in February after a freak winter storm in Texas battered the state’s energy system. Prices at the Houston Ship Channel hub shot up to $400.000/MMBtu on Feb. 16 and remained sharply elevated for days.

CFE wouldn’t be the first company fighting the cost of the natural disaster. The Texas Attorney General’s Office also is...