Petrosin CNG has initiated international arbitration proceedings against Mari Energies Limited, seeking $19.1 million (around Rs5.36 billion) in damages over the termination of a long-term natural gas supply agreement.

The case has been filed before the International Chamber of Commerce (ICC), with London designated as the seat of arbitration under the contract.

Petrosin alleges that Mari Energies unlawfully terminated the Gas Sales and Purchase Agreement (GSPA), causing substantial financial losses, and is also seeking reimbursement of arbitration costs.

Mari Energies has denied the claims, stating that it legally ended the agreement after Petrosin ceased to hold a valid operating licence, making the termination consistent with the contract.

The dispute relates to a gas supply arrangement from the Halini Production Field, which was intended to remain effective as long as gas reserves were available and the buyer fulfilled its contractual obligations.

Apart from the ICC proceedings, Petrosin has challenged an Islamabad High Court ruling before the Supreme Court after the high court upheld Mari Energies’ decision to terminate the agreement in January 2026.

Following the termination notice issued in May 2025, Petrosin obtained interim relief from a civil court before initiating ICC arbitration and filing an enforcement petition under Pakistan’s Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act, 2011. However, the Islamabad High Court later dismissed that petition.

The latest proceedings add to the list of international arbitration disputes involving Pakistan’s energy sector.