Petrosin CNG Initiates $19.1 Million Arbitration Against Mari Energies Over Gas Supply Termination

Petrosin CNG (Pvt) Ltd has launched international arbitration proceedings against Mari Energies Ltd at the International Chamber of Commerce (ICC) in London, seeking $19.1 million in damages for the alleged unlawful termination of a gas supply agreement. The dispute centers on the cancellation of a Gas Sales and Purchase Agreement (GSPA) regarding supply from the Halini Production Field, a decision Mari Energies maintains was justified due to the claimant’s lack of a valid license.

The Dispute Over Gas Supply Termination

The conflict originates from a long-term commercial arrangement between the two entities. Under the original GSPA, Mari Energies was obligated to supply gas from the Halini field to Petrosin CNG for the duration of the field’s availability, provided Petrosin remained in compliance with contract terms.

In May 2025, Mari Energies issued a formal termination notice. Petrosin CNG contends that this move was a breach of contract, while Mari Energies argues the termination was lawful because Petrosin failed to maintain a valid operating license. This disagreement over contractual obligations has led to a multi-layered legal battle spanning both domestic courts in Pakistan and international arbitration forums.

Legal Proceedings in Pakistan and London

Before turning to the ICC, Petrosin sought relief within the Pakistani judicial system. A civil court initially granted an order in June 2025 to preserve the status quo, effectively pausing the termination of the supply agreement. However, the legal landscape shifted when the Islamabad High Court (IHC) later dismissed an enforcement petition filed by Petrosin.

The IHC ruled in favor of Mari Energies on January 1, 2026, affirming the company’s right to terminate the GSPA. In response, Petrosin has filed a Civil Petition for leave to appeal before the Supreme Court of Pakistan under Article 185(3) of the Constitution.

Parallel to these domestic efforts, Petrosin is pursuing the $19.1 million claim through the ICC in London, citing the GSPA’s arbitration clause. This clause mandates that disputes regarding the contract be resolved under ICC Rules of Arbitration, with London serving as the seat of the proceedings.

Context of Energy Sector Arbitration

The case highlights the increasing complexity of commercial disputes within Pakistan’s energy sector. As major producers and distributors navigate volatile supply agreements, international arbitration has become a common venue for resolving high-stakes financial claims. The total claim, which includes the $19.1 million in damages plus additional arbitration costs, represents a substantial financial liability for the parties involved.

Key Facts at a Glance

• Claimant: Petrosin CNG (Pvt) Ltd
• Respondent: Mari Energies Ltd
• Disputed Amount: $19.1 million plus arbitration costs
• Primary Venue: International Chamber of Commerce (ICC), London
• Domestic Legal Status: Pending appeal before the Supreme Court of Pakistan