ENGRO claims damages of PkR 28.85 bn from SNGP – Alfalah Securities Limited

Karachi, July 03, 2012 (PPI-OT): As reported in the local newspaper, Engro Fertilizer has claimed damages worth of PkR 28.85 bn from SNGP for not supplying the gas to its new plant – ENVEN1.3 as per the agreement.

According to Alfalah Securities Limited, the new plant was only supplied gas for 43 days in 2012 which is against the sovereign contract between Engro and SNGP. SNGP also failed to comply with the Sindh High Court decision in favor of Engro to direct uninterrupted 100 mmcfd gas to the said plant. Alfalah Securities Limited believes 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.