August 05, 2022 (MLN): The London Court of International Arbitration (LCIA) has delivered its arbitral award in favour of Sui Nothern Gas Pipelines Limited (SNGPL) validating SNGPL claims against Quaid e Azam Thermal Power (Private) Limited (QATPL) on account of failure to offtake the Take or Pay quantities of RLNG by QATPL.
To note, a dispute between QATPL and SNGPL regarding the non-offtake of the Take or Pay (contractual quantities) of RLNG by QATPL was pending in the LCIA.
As per final awards issued by the arbitrator, a significant portion of the related litigation and arbitration costs are also held to be borne by QATPL, the notice read.
The arbitrator has further held that SNGPL has rightfully en-cashed the security deposits held by it and has directed the QATPL to replenish the same as per the contractual requirements.
It is pertinent to mention that under the terms of the license granted to SNGPL by OGRA read with the decision of ECC and in line with the tariff regime in vogue, the arbitral award under discussion will not impact the profitability of the company as the revenues billed to QATPL have already been treated as operating revenue.
Currently, the stock of the company is trading at Rs32.35 [9:59 PST], down by 10 paisa or 0.31% DoD
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