ISLAMABAD: National Power Parks Management Company (NPPMCL), the operator of two RLNG-based power plants in Punjab, has expressed serious concerns over Sui Northern Gas Pipeline Company Limited‘s (SNGPL) recent move to resume international arbitration on a previously resolved claim of Rs 15.5 billion, according to well-informed sources.
The dispute traces back to 2018 when SNGPL drew Rs 10.38 billion from NPPMCL’s gas supply deposits under the Gas Supply Agreement (GSA) for the Balloki and Haveli Bahadur Shah power plants, claiming losses. The matter was referred to the London Court of International Arbitration (LCIA), which ruled in favor of NPPMCL in December 2021, deeming SNGPL’s actions unlawful. Subsequent appeals by SNGPL were dismissed by the English High Court in February 2023, affirming the finality of the LCIA’s awards.
Despite NPPMCL’s attempts to resolve minor differences in good faith, SNGPL recently filed fresh arbitration requests with the LCIA, prompting NPPMCL to appeal to the Power Division. NPPMCL asserts that SNGPL’s actions are redundant and could lead to significant additional costs for both federal entities, questioning the rationale behind reopening settled matters.
Story by Mushtaq Ghumman
