Pakistan’s energy sector is facing another international commercial dispute after Petrosin CNG (Private) Limited initiated arbitration proceedings against Mari Energies Limited before the International Chamber of Commerce (ICC), seeking US$19.1 million (about Rs5.36 billion) in damages along with arbitration costs and other relief.
The case arises from the termination of a Gas Sale and Purchase Agreement (GSPA) between the two companies. Petrosin alleges that Mari Energies unlawfully ended the contract, while the dispute is set to be resolved under ICC arbitration rules in London, as provided in the agreement.
Dispute Centers on Gas Supply Agreement
According to court documents, Petrosin and Mari Energies signed the 2022 Gas Sale and Purchase Agreement for gas supplies from the Halini Production Field.
Petrosin claims the agreement was intended to remain in force as long as gas remained available and the buyer complied with its contractual obligations. The company alleges that Mari Energies’ termination notice, issued on May 27, 2025, breached the agreement and caused significant commercial losses.
Mari Energies’ response to the allegations was not included in the court documents reviewed for this report.
Legal Proceedings in Pakistan and ICC Arbitration
Following the termination notice, Petrosin sought interim relief before a civil court, which ordered the preservation of the status quo pending further proceedings.
The company subsequently initiated arbitration under the ICC Rules and also filed an enforcement petition under Pakistan’s Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act, 2011, seeking recognition of the arbitration agreement and interim protective measures.
Petrosin has also filed a petition before the Supreme Court of Pakistan challenging a January 14, 2026 judgment of the Islamabad High Court.
Arbitration to Be Heard in London
Court records indicate that the GSPA contains an arbitration clause requiring disputes to be resolved under the ICC Rules, with London designated as the seat of arbitration.
The arbitration tribunal will determine the parties’ contractual claims in accordance with the agreement and applicable law.
Broader Implications for Pakistan’s Energy Sector
The dispute adds to a series of international arbitration cases involving Pakistan’s energy industry in recent years.
Legal and industry observers say the outcome could influence confidence in long-term gas supply agreements and commercial contracting within Pakistan’s energy market, particularly between gas producers and industrial consumers.
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