ABS & Co advised state-owned, Sui Northern Gas Pipeline Limited (SNGPL), in relation to its Gas Supply Agreement with Pakistan Electric Power Company, GENCO-II at Guddu. The buyer under the GSA operates a 1655 MW power plant in District Kashmore and was previously allocated gas by the Government of Pakistan up to a total of 120 mmcfd from different gas fields.
However the allocation made by the government expired in 2017 which resulted in the need to negotiate and sign a new GSA. ABS & Co drafted the GSA and negotiated the agreement with the counter-party on behalf of SNGPL. Under the terms of the new Gas Supply Agreement (GSA), the obligations are bi-furcated into two portions with the buyer assuming take-or-pay obligations in relation to the supply of gas from one gas field and the seller limiting its liability for the supply of gas on as-available basis from another gas field.
ABS & Co’s team was led by Bakhtawar Bilal Soofi from the Lahore office.