State-run Pakistan State Oil (PSO) has won an arbitration case against multinational commodity trading company Gunvor Group Ltd. regarding excess payments for shipments of natural gas, Bloomberg reported Wednesday.
According to details, the London Court of International Arbitration ruled in favor of Pakistan State Oil, which had reduced payments to Gunvor due to overcharged shipments.
Citing unnamed sources, Bloomberg said that the state-run oil company was awarded over $14.6 million, in addition to other costs on October 8. The case was initiated by Gunvor in 2020.
Both PSO and Gunvor have not commented on the matter as of now.
It is pertinent to mention here that Pakistan chose Italy’s Eni SpA and trading house Gunvor Group for LNG supply for the next decade in 2017. The terms were favorable at the time, and the prices were cheaper than a similar contract struck with Qatar in 2016.
However, with the surge in European gas prices, the two suppliers canceled more than a dozen cargoes booked for delivery between October 2021 and June 2022.
