Suspension of gas supply: Two power companies issue OFME notices to CPPA-G

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M/s Rousch (Pakistan) Power Limited and M/s Liberty Power have reportedly declared Other Force Majeure Event (OFME) notices to CPPA-G due to suspension of gas, citing individual reasons, well informed sources told Business Recorder.

Both power companies have written separate letters to the Chief Executive Officer (CEO) CPPA-G and other concerned officials to bring the gas situation into their notice. According to M/s Rousch, its entire complex was shutdown at 10:15 hours on December 13, 2021 due to SNGPL curtailing gas supply. The company declared a 100% other Force Majeure Event (FME), and duly notified CPPA under Article 13.2 of the PPA, read with clause 1 of the RLNG Interim Gas Supply Agreement and payment procedure of June 1, 2017 between the company, CPPA and SNGPL. The Company is excused from its obligations under the PPA since the mentioned date and time in accordance with Article 13.4 of the PPA.

M/s Rousch, in its letter of December 20, 2021, further notified that the 100% OFME is continuing and is to be treated as such until further notice to CPPA-G by the company. The company is continuously pursuing the matter with SNGPL for early restoration of RLNG and will apprise CPPA as soon as any formal information from SNGPL is received.

M/s Liberty Power, in its letter written on December 21, 2021 said that gas supplier, in its letter of 18th December 2021 instructed that the supply of raw gas to their Power Plant Complex be stopped due to non-payment with immediate effect at 17:20 hours on even date, and requested the Company to make arrangement for immediate suspension of gas consumption. According to Liberty Power, the performance of the company to operate the Complex and to discharge its contractual obligations under PPA have been constrained on account of suspension of gas supply by the gas supplier which is beyond reasonable control of the company and as a consequence thereof, the company has declared OFME under section 13.1(c) with effect from 1720 hours on December 18, 2021 (suspension date).

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