ISLAMABAD: Pakistan LNG Limited (PLL) has warned K-Electric (KE) that it may reassess, curtail or suspend the supply of re-gasified liquefied natural gas (RLNG) if the power utility fails to clear outstanding payments of Rs6.75 billion.
In a letter to K-Electric’s chief executive officer, PLL said outstanding principal dues for RLNG supplied between May and July 2026 stood at Rs6.7526 billion as of August 27.
PLL said that despite repeated follow-ups, KE had neither cleared the outstanding amount nor provided a substantive response regarding the unpaid receivables.
The state-owned LNG company maintained that all invoices had been issued in accordance with the Gas Sale Agreement (GSA) between PLL and KE and were based on the RLNG tariff notified by the Oil and Gas Regulatory Authority (OGRA).
PLL stressed that compliance with the GSA was mandatory and that KE was contractually obligated to settle its dues. It warned that unilateral withholding of payments constituted a breach of the agreement.
The LNG supplier also said its continued RLNG supplies to KE were being constrained by the financial exposure permitted under the existing Standby Letter of Credit (SBLC) limit of Rs13.084 billion.
According to PLL, KE had not provided an enhanced SBLC despite repeated requests to reflect the revised RLNG tariff.
PLL warned that if the situation persisted, it could face difficulties in arranging additional LNG cargoes and may consequently reassess, curtail or suspend RLNG supplies to KE, without prejudice to its rights under the GSA and applicable law.
The company once again urged K-Electric to immediately clear the outstanding payments. Copies of the letter were also sent to the Petroleum Division, Power Division and senior officials, including the Director General Gas.
Story by Mushtaq Ghumman
