The King’s Bench Court of Alberta approved the termination of Canacol Energy contracts with Colombian firms but added safeguards for households and small businesses in the regulated gas market.
The court recognized Canacol’s aim to protect Colombian consumers. It required termination orders to maintain current prices for those serving the regulated market.
Judge Feasby stated that matters involving Colombian law, the Constitution and public order must be resolved in Colombian courts. Issues of judicial recognition in the jurisdiction where the orders take effect will be handled there after the main decision in Canada.
Canacol Energy said the restructuring seeks to preserve and increase natural gas production in Colombia. The company stated its intention to continue selling gas when possible under viable contractual schemes, though its capacity will depend on agreements with counterparties in the unregulated market.
