Total Accused of Manipulating U.S. Natural Gas Market
September 22 2015 - 02:40PM
Dow Jones News
LONDON—U.S. regulators have accused French oil firm Total SA of
manipulating the price of natural gas in the southwest between June
2009 and June 2012.
According to a notice published by the Federal Energy Regulatory
Commission on Monday, traders at the French company's Houston-based
subsidiary, over the course of the three years, conducted a scheme
in which uneconomic trades in the physical market were made to move
prices in a way that benefited Total's related positions on at
least 38 occasions.
The allegations are the latest in a series of crackdowns by FERC
against manipulation in the gas and power markets. In recent years
the regulator has pursued high-profile cases against J.P. Morgan
Chase & Co., Barclays PLC and Deutsche Bank AG.
Last month, an administrative law judge for the regulator found
BP PLC guilty of a similar scheme conducted in 2008. Enforcement
lawyers from FERC have sought fines of nearly $50 million for the
market abuse, though the government's evidence showed the activity
netted the company less than $250,000 in profits. BP denies
wrongdoing and is appealing the ruling.
FERC didn't give details of the amount of money Total might have
made from its alleged trading scheme, or the potential penalty it
might seek.
According to the regulators, the alleged scheme was conducted by
traders on the Total Gas & Power North America West Desk, led
by supervisors Therese Nguyen and Aaron Hall.
Total didn't immediately respond to requests for comment.
Write to Sarah Kent at sarah.kent@wsj.com
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(END) Dow Jones Newswires
September 22, 2015 14:25 ET (18:25 GMT)
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