London-based arbitration now looms over a Pakistani energy contract dispute, with Petrosin CNG seeking $19.1 million from Mari Energies for what it calls an unlawful gas supply termination. The claim, filed at the International Chamber of Commerce (ICC), adds another layer of international legal complexity to Pakistan's energy sector. Main Developments Petrosin CNG, a company operating in Pakistan, initiated ICC proceedings in London against Mari Energies Ltd. The claim seeks $19.1 million (approximately Rs5.357 billion) in damages plus arbitration costs, alleging Mari Energies unlawfully terminated a Gas Sales and Purchase Agreement (GSPA). Mari Energies, one of Pakistan's top three oil and gas producers, has contested the claims. The company defends its termination decision on grounds that Petrosin lacked a valid licence to receive gas under the agreement. Read also: Sindh Chief Minister Urges Indonesian Investment in Key Port, Tech Projects The dispute traces back to May 2025, when Mari Energies issued a termination notice for the GSPA covering gas supply from the Halini Production Field. Petrosin had initially secured interim relief from a Civil Court in June 2025, which preserved the status quo pending adjudication. Background The GSPA between Petrosin CNG and Mari Energies was structured to remain in effect for as long as gas remained available from the Halini Production Field, contingent on the buyer fulfilling its obligations. Petrosin contends the agreement is a binding commercial contract governed by Pakistani law, containing a clear arbitration clause under ICC Rules with the seat of arbitration in London. After Mari's termination notice, Petrosin pursued dual legal tracks: it invoked the ICC arbitration agreement and filed an Enforcement Petition under Pakistan's Recognition and Enforcement (Arbitration Agreements and Foreign Arbitral Awards) Act 2011. The Islamabad High Court (IHC), in a January 1, 2026 judgment, dismissed the Enforcement Petition and ruled in Mari's favour, stating the termination was valid. Petrosin has since filed a Civil Petition for leave to appeal before the Supreme Court of Pakistan under Article 185(3) of the Constitution, challenging the IHC's single-bench decision. Why It Matters This case joins a growing list of international commercial arbitrations involving Pakistan's energy sector, highlighting persistent contractual friction between foreign and domestic operators. The outcome could set a precedent for how gas supply agreements are enforced when licensing issues arise, potentially affecting investor confidence in Pakistan's energy regulatory framework. The $19.1 million claim, while modest relative to Mari's portfolio, underscores the financial stakes for smaller operators like Petrosin. A ruling against Mari could also trigger scrutiny of other GSPA termination practices across the sector. What's Next The Supreme Court of Pakistan will hear Petrosin's appeal against the IHC judgment. Simultaneously, the ICC arbitration proceedings in London will proceed, with both parties preparing their cases under international rules. The arbitration panel will determine whether Mari's termination was lawful under the GSPA and, if not, what damages are owed. Observers will watch whether the Supreme Court's decision influences the ICC tribunal's reasoning, given the parallel domestic and international legal tracks.