The Petroleum Division on Saturday vehemently rejected a news item appearing in a section of print media regarding the case between Pakistan LNG Terminal Limited (PLTL) and Pakistan Gas Port Consortium Limited (PGPCL) in London Court of International Arbitration (LCIA).
“The insinuation of the news item that the decision to consolidate the two arbitrations is a setback for PLTL is erroneous and misleading, as the LCIA has given the right to PLTL to request for bifurcation of both the arbitrations.” the Petroleum Division clarified in a news release.
It said the LCIA decision to consolidate the two arbitrations, initiated by PGPCL first on termination of ‘Operation and Services Agreement’ and secondly on delay in ‘the Commercial Start Date,’ was purely a procedural matter and had no bearing, whatsoever, on the merits of both the arbitrations, which would commence as per the agreed schedule between the parties.
The Petroleum Division said the PLTL had imposed liquidated damages while exercising its contractual and legal rights on account of PGPCL’s delay in starting commercial operations of the terminal.
“PGPCL was required to start commercial operations on June 30, 2017. Due to delay, commercial operations were finally commenced on January 4, 2018 after a delay of 187 days,” it said, recovery of liquidated damages, its extent and nature, as well the question of consequential loss was a legal matter to be decided by the Arbitral Tribunal.
“Therefore, statement that the LDs (Liquidity Damages) claim of PLTL will fail is merely a personal inference and deliberate misrepresentative of the facts,” the Petroleum Division said urging media to avoid any comment on the case, which was underway in the LCIA and a sub-judice matter.