Key Takeaways
- Petrosin CNG has filed a lawsuit against Mari Energies seeking $19.1 million in damages.
- The dispute centers around the termination of a gas supply agreement, with both parties presenting conflicting claims.
- Mari Energies argues it lawfully terminated the contract due to Petrosin's lack of valid operating license.
Singapore-headquartered Petrosin CNG has initiated legal proceedings against Mari Energies through the International Chamber of Commerce (ICC) in London, seeking $19.1 million in damages over an alleged unlawful termination of a gas supply agreement.
Mari Energies, however, maintains that it lawfully terminated the Gas Sales and Purchase Agreement (GSPA) after Petrosin no longer held a valid operating license, stating that this action was taken to protect its interests.
The contract, which covered the supply of natural gas from the Halini Production Field, was intended to remain in force as long as gas was available and the buyer complied with its contractual obligations. The agreement included an arbitration clause requiring disputes to be resolved under ICC Rules of Arbitration, with London designated as the seat of arbitration.
Following Mari Energies’ termination notice in May 2025, Petrosin secured interim relief from a civil court before commencing ICC arbitration and filing an enforcement petition. However, the Islamabad High Court later dismissed this petition on January 1, 2026.
Petrosin CNG has also filed a separate civil petition before the Supreme Court challenging the Islamabad High Court’s ruling that upheld Mari Energies’ decision to terminate the contract.
The dispute highlights the complexities and legal challenges faced in international business transactions, particularly those involving natural gas supply agreements. Both parties have presented their respective arguments, with Petrosin arguing that the termination breached the terms of the agreement and caused significant commercial losses.
Mari Energies has also sought recovery of arbitration costs through the ICC proceedings, adding to the ongoing legal battle between the two companies.
