PLL issues warning to KE

ISLAMABAD: The Pakistan LNG Limited (PLL) has warned the K-Electric (KE) that it may reassess, curtail or suspend RLNG supplies if the power utility fails to clear outstanding payments amounting to Rs 6.75 billion.

In a letter addressed to the chief executive officer of K-Electric, the PLL stated that the total outstanding principal against RLNG supplies made during May to July 2026 stood at Rs 6.7526 billion as of August 27, 2026.

The PLL said despite repeated follow-ups, K-Electric had neither remitted payment against the outstanding receivables nor provided a substantive response to its correspondence.

The state-owned LNG company maintained that all invoices had been raised strictly in accordance with the Gas Sale Agreement (GSA) between PLL and K-Electric and were based on the Oil and Gas Regulatory Authority (OGRA)-notified RLNG tariff.

“Compliance with the GSA is mandatory,” the PLL said, adding that the K-Electric was unequivocally obligated to settle the dues as agreed and that any unilateral withholding of payment constituted a breach of the agreement.

The PLL further disclosed that its continued supply of RLNG to the K-Electric remained constrained by the financial exposure permissible under the available Standby Letter of Credit (SBLC) limit of Rs 13.084 billion.

According to the PLL, despite numerous requests, the K-Electric had not provided an enhanced SBLC reflecting the revised RLNG tariff.

The company warned that if the situation persisted, it might be unable to arrange further LNG cargoes and could consequently reassess, curtail or suspend RLNG supplies to K-Electric, without prejudice to its rights and remedies under the GSA and applicable law.

The PLL yet again requested the K-Electric to immediately release the outstanding payments. Copies of the letter have also been sent to the Petroleum Division, Power Division and senior officials of the Petroleum Division, including the Director General Gas (Petroleum Division). —MUSHTAQ GHUMMAN