LAWSUIT FILED ALLEGING U.S. ENERGY GIANT AES AND PARTNERS COORDINATED A SCHEME TO MONOPOLIZE THE LNG-TO-POWER MARKET IN PANAMA AND THE REGION

Collusion and Unfair Business Practices Allegedly Stifled Competition

ARLINGTON, Va., Jan. 7, 2026 /PRNewswire/ -- Panamanian companies Sinolam LNG Terminal, S.A. and Sinolam Smarter Energy LNG Power Co. (together, "Sinolam") today announced the filing of a civil action in the Circuit Court for Arlington County, Virginia, against AES Corporation (NYSE: AES) and partners including, InterEnergy Holdings (UK) Limited, alleging a years-long scheme to unlawfully exclude Sinolam from Panama's rapidly growing liquefied natural gas-to-power market.

According to the complaint, AES and its partners conspired to dismantle Sinolam's LNG power generation and terminal projects in Panama. The lawsuit alleges the defendants used coercive tactics, misuse of confidential information, and improper influence over government regulators to eliminate competition and secure monopoly control over LNG importation, storage, regasification, and LNG-fueled power generation in Panama.

A Competitive LNG Project Allegedly Undermined

Sinolam alleges it lawfully secured regulatory approvals, power purchase agreements, and long-term customer commitments to develop a major LNG-fired power plant and a corresponding LNG terminal in Colón, Panama. These projects were designed to capitalize on Panama's emergence as the LNG hub for Central America following the expansion of the Panama Canal.

The complaint asserts AES, headquartered in Arlington, Virginia, viewed Sinolam as a threat to be eliminated from the Panamanian market. Sinolam further alleges that, after Sinolam declined pressure to abandon its terminal project or submit to commercially unreasonable terms that would have made it dependent on AES's LNG infrastructure, AES shifted from negotiation to exclusion.

According to the complaint, senior AES executives directed critical strategy from its global corporate headquarters in Virginia, including efforts to delay Sinolam's permits, undermine its government approvals, and ultimately block the projects.

Alleged Role of InterEnergy and Misuse of Confidential Information

The lawsuit further alleges that InterEnergy entered the scheme after obtaining Sinolam's confidential business information under a non-disclosure agreement. Rather than investing in Sinolam's project, the complaint alleges InterEnergy used the confidential information to partner with AES in forming a new joint venture that displaced Sinolam and its customers from the market.

Through this partnership, AES and InterEnergy allegedly removed one of Sinolam's key customers from the market. The complaint claims this conduct rendered Sinolam's long-term contracts worthless and destroyed billions of dollars in expected economic value.

Alleged Government Manipulation and Market Exclusion

Sinolam alleges that Defendants leveraged political influence to obtain regulatory advantages such as expedited approvals for AES-aligned projects and the revocation of Sinolam's licenses. According to the complaint, these actions ultimately led to the permanent cancellation of Sinolam's power generation license by Panamanian regulators.

Sinolam further alleges the Panamanian government is a significant shareholder in AES's Panama-based subsidiary, AES Panama S.R.L. and that AES used its connections at the highest levels of the Panamanian government to pressure Sinolam over a period of many years and across successive administrations.

As a result, according to the lawsuit, AES now controls both major LNG-fueled power plants in Panama (one in partnership with InterEnergy) and the only operational LNG terminal in the country—effectively eliminating competition in Panama and exerting significant control over energy supply in Central America and the Caribbean, markets worth billions of dollars.

Claims and Relief Sought

The lawsuit asserts ten claims including tortious interference with contract and business expectancy, Virginia statutory civil conspiracy, and Virginia common-law conspiracy. Sinolam seeks compensatory damages in excess of $4 billion, along with other relief permitted by law.

"This case is about protecting competition and the rule of law," said Kenneth Zhang, Sinolam's CEO. "Sinolam invested hundreds of millions of dollars, followed every legal requirement, and played by the rules. What we allege is a coordinated effort by powerful incumbents—backed by their cronies and government partners to shut down a competitor rather than compete on the merits, with the victims including not only Sinolam but the people of Panama and other countries who are now paying higher energy prices, and LNG suppliers in the United States and elsewhere, because AES and its partners, along with the assistance or authorization of the Panamanian government, want to control the market."

About Sinolam
Sinolam LNG Terminal, S.A. and Sinolam Smarter Energy LNG Power Co. are energy infrastructure developers focused on LNG-to-power solutions in emerging markets. Sinolam's projects are designed to provide reliable, lower-emission electricity while expanding access to competitively priced natural gas in Panama and the region.

SOURCE Sinolam Smarter Energy