The early termination of a gas supply agreement gave rise to arbitration proceedings under the Rules of Arbitration of the Cairo Regional Centre for International Commercial Arbitration. FTI Consulting was appointed by the claimant, a gas trading company, to provide independent expert witness evidence on the loss suffered as a result of the interruption of its gas supply.
The claimant, a gas trader and pipeline operator, signed a gas supply agreement with a North African state-owned supplier of gas. Under the agreement, the claimant could purchase large volumes of gas over a period of approximately 20 years. The gas purchased by the claimant was transported in a purpose-built pipeline for sale to industrial customers in a neighbouring country.
Shortly after the commissioning of the pipeline, the claimant’s gas supply was interrupted in disputed circumstances and the underlying contract was terminated. The claimant sought compensation for the losses caused by the early termination of the agreement, including the lost profits from the resale of gas.