A federal judge has thrown out a lawsuit filed by Kansas that alleged the trading firm Macquarie Energy manipulated natural gas prices during a winter storm in February 2021.
The lawsuit cannot move forward because Kansas failed to meet a procedural requirement to allege Macquarie was registered under a federal trading law, US district court judge Daniel Crabtree said in a ruling on 5 October. The ruling puts the case "on ice" for now but will not prevent Kansas from seeking to "reboot" its case later by addressing the procedural requirement.
"While [Macquarie's] maneuver looks like gamesmanship, it's necessarily effective," US district court judge Daniel Crabtree wrote. "Defendant has found a rule of the game that works in its favor, and the parties must obey the rules."
Kansas attorney general Kris Kobach (R) filed the case in state court earlier this year, alleging the company made an "economically irrational natural gas price" on 16 February that caused prices on the Southern Star index to hit a record of $622.79/mmBtu. Crabtree did not review the merits of the lawsuit but found if Kansas' allegations were true, the trade could have "turned out really well" for Macquarie.
Macquarie has said the state's allegations are unfounded. Natural gas prices had spiked throughout US midcontinent during the winter storm in 2021 when a surge of heating and power demand coincided with a loss of gas production caused by freezing temperatures.
"Macquarie Energy is pleased with the court's ruling and will continue to vigorously defend any claims brought against it," the company said.
During the briefing of the case, Kansas had asked to file an amended lawsuit to address the registration issue, but Crabtree said it was too late. Kobach's office did not immediately respond to a request for comment.
