STAFF REPORT KHI: Engro Fertilizer has claimed damages worth of Rs. 8.85 billion from SNGPL for not supplying the gas to its new plant – ENVEN1.3 as per the agreement.

According to details, the new plant was supplied gas only for 43 days in 2012 which is against the sovereign contract signed between Engro and SNGPL. The gas company also failed to comply with the Sindh High Court decision in favour of Engro to direct uninterrupted 100 mmcfd gas to the said plant.

“The dishonouring by SNGPL of its commitments will destroy a huge investment of over $1.1 billion, hence, discouraging investment in the country,” stated a financial adviser close to the matters. “If they go down they will take the entire banking sector with them which will destroy Pakistans economy,” the source added.

Sources said that the issue would take time to resolve, though, if Engro manages to receive a favourable outcome of the claims, it would be a significant positive for the company.

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