Two state-run companies have been in British courts for years. Sui Northern Gas Pipelines Limited and Nation­al Power Parks Management Company Ltd, the compa­nies in question, operate under the Ministry of Energy. The dispute rests on the issue of LNG supply to NPPMCL for its two power plants during delayed commercial operations.

Now, SNGPL has lost the Rs24 bn case against NPPMCL and this is after a lengthy proceeding of more than three years of court fees, counsel charges, and travel expens­es. The dispute was taken to the London Court of Inter­national Arbitration (LCIA) back in October 2019. It took five years of added costs in a foreign currency to settle this issue that could have been utilized effectively elsewhere. It also indicates an inability of our ministries to arbitrate such matters and internal disputes.

Likewise, privatization of the power plants has also not taken place, despite the case in London courts. The reason for the delay has been challenging arbitration and misun­derstanding of parties on gas agreements. Now, it is good that a decision has been reached because the real price be­ing paid was in delays and extended costs.

Already, Pakistan is struggling with a sharp drop in the im­ports of LNG, bound to worsen in the coming days. The coun­try is heavily dependent on gas for power generation and re­lies on it for a third of its electricity output. Likewise, power production costs were 1.25% higher with the LNG shortage as of June 2022. Costs have jumped since July and only two of the country’s four LNG-dependent plants are operational.

With all these issues in the backdrop, the length of the ar­bitration in a foreign court indicates the amount that could be reallocated in the energy and gas sector. Hopefully, this decision will resolve the situation so funds can be redirect­ed to other problems in the division