Altern Energy Limited has terminated key power and gas agreements with the government and related entities after facing prolonged operational losses due to a lack of dispatch demand.
The company, in a notice to the Pakistan Stock Exchange, confirmed that it has signed a Termination Agreement with the Government of Pakistan and the Central Power Purchasing Agency.
Under the agreement, major contracts, including the Implementation Agreement, the sovereign guarantee, and the Power Purchase Agreement, have been terminated, effectively ending the project’s operational framework.
The decision follows a request submitted by AEL last year seeking early termination of the power purchase agreement, citing continued financial losses due to zero dispatch from the off-taker over several years.
Separately, the company has also signed a termination agreement with Sui Northern Gas Pipelines Limited, resulting in the cancellation of its gas supply agreement.
Altern Energy Limited, the parent company of Rousch Pakistan Power Limited, operates a gas fired power plant and holds investments in other energy sector companies.
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