British Petroleum faces being fined more than £18million for alleged gas market manipulation by US federal energy regulators.
The Federal Energy Regulatory Commission’s (FERC) Office of Enforcement is investigating claims that BP manipulated the natural gas market at the Houston Ship Channel between mid-September and November 2008.
The regulator claims BP’s Texas-based Southeast Gas Trading bought and sold gas in a way that increase the company’s financial position.
The total proposed fines include a penalty of $28 million and $800,000 in profits, plus interest, from the alleged trading scheme.
BP now has 30 days to respond to the allegations, first raised by FERC in 2011.
“These allegations are without merit and we stand by what we previously disclosed publicly in February 2011 – that BP natural gas traders did not engage in any market manipulation in late
2008,” Geoff Morrell, BP’s spokesperson, said in a statement.
“BP is disappointed that the FERC has brought this action and we will vigorously defend against these allegations,” he added.
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