Genesis routs Shell in gas case

The case involved a heads of agreement signed in 1997 between Genesis' predecessor, ECNZ, and Fletcher Energy, which Shell bought last year.

Under the agreement Fletcher would supply ECNZ with 320 petajoules of gas over 20 years.

The pricing has never been revealed but is known to be well above wholesale market gas prices. A June 2000 High Court judgment favouring Fletcher put the gross value of the gas in question at $1.2 billion to $1.8 billion, suggesting a price of $3.75 to $5.63 a gigajoule.

Genesis has argued the heads of agreement wasn't binding.

"The effect of the majority judgment of the Court of Appeal is to have destroyed the bargain that the parties had reached commercially," a Shell statement said.

"Contrary to the majority's conclusion, both parties always intended that the heads of agreement in question was a legally binding contract."

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Anti-spam verification:

Type the text you see in the image into the field below. You are asked to do this in order to verify that this enquiry is not being performed by an automated process.

Related News:

Devon Funds Morning Note - 14 October 2026
BIT - Transaction in Own Shares
PHL - Operational Update - Q2 FY27
October 14th Morning Report
MCY - Employee Share Scheme - Financial Assistance Notice
PGW - PGG Wrightson FY27 Market Guidance
TEM - Transaction in Own Shares
October 13th Morning Report
October 12th Morning Report
TEM - Transaction in Own Shares