ISLAMABAD: Petrosin CNG, a company operating in Pakistan, has initiated proceedings before the International Chamber of Commerce (ICC), London, against Mari Energies Ltd, seeking damages of $19.1 million (approximately Rs5.357 billion), along with arbitration costs, for the alleged unlawful termination of its gas supply.

Mari Energies, one of the country’s top three oil and gas producers, has contested Petrosin’s claims and defended its decision to terminate the Gas Sales and Purchase Agreement (GSPA) because of the claimant having no valid licence.

According to court filings, Petrosin CNG contends that Mari Energies unlawfully terminated the GSPA, causing substantial commercial losses for which it seeks compensation through international arbitration.

Petrosin filed a Civil Petition for leave to appeal before the Supreme Court of Pakistan under Article 185(3) of the Constitution of the Islamic Republic of Pakistan against the judgment of Jan 1, 2026 by a single bench of the Islamabad High Court that ruled in favour of Mari, saying it validly terminated the GSPA.

Petrosin alleges unlawful termination of gas contract

Petrosin CNG (Pvt) Ltd entered into GSPA with Mari for the supply of gas from the Halini Production Field. Under the terms, the agreement was to remain in effect for as long as gas remained available from the field, provided that the buyer was not in breach of its obligations under the GSPA.

Petrosin contends that the GSPA was a binding commercial contract governed by the laws of Pakistan and contained a clear and unequivocal arbitration agreement providing for the resolution of disputes under the International Chamber of Commerce Rules of Arbitration, with the seat of arbitration in London.

Mari Energies issued a termination notice in May 2025, which Petrosin contends was unlawful and contrary to the terms of the GSPA. Petrosin initially approached the Civil Court, which, by an order in June 2025, granted interim relief preserving the status quo pending adjudication.

Thereafter, Petrosin invoked the arbitration agreement by commencing arbitration under the ICC Rules and also filed an Enforcement Petition under the Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act 2011, seeking recognition and enforcement of the arbitration agreement, together with interim and conservatory measures pending the arbitral proceedings.

The IHC, however, dismissed the said Enforcement Petition.

The case adds to a growing list of international commercial arbitrations involving Pakistan’s energy sector.

Published in Dawn, July 15th, 2026