Key Takeaways
- Pakistan LNG Limited (PLL) has warned K-Electric to clear outstanding payments of Rs 6.75 billion.
- The warning comes after repeated follow-ups by PLL with no response from K-Electric.
- PLL may reassess, curtail or suspend RLNG supplies if the utility fails to settle the dues.
Pakistan LNG Limited (PLL) has issued a stern warning to K-Electric, urging the power utility to clear an outstanding payment of Rs 6.7526 billion for RLNG supplies made between May and July 2026.
In a letter addressed to the CEO of K-Electric, PLL highlighted that despite multiple follow-ups, the utility had neither remitted the payment nor provided a substantive response.
The state-owned LNG company emphasized that all invoices were raised in accordance with the Gas Sale Agreement (GSA) between PLL and K-Electric, based on the Oil and Gas Regulatory Authority (OGRA)-notified RLNG tariff.
Compliance with the GSA is mandatory, and PLL stated that K-Electric is unequivocally obligated to settle the dues as agreed, highlighting that any unilateral withholding of payment constitutes a breach of the agreement.
The continued supply of RLNG to K-Electric is constrained by the financial exposure permissible under the available Standby Letter of Credit (SBLC) limit of Rs 13.084 billion.
According to PLL, K-Electric has not provided an enhanced SBLC reflecting the revised RLNG tariff, further complicating the situation.
In a bid to ensure compliance, PLL has warned that if the situation persists, it may be unable to arrange further LNG cargoes and could reassess, curtail or suspend RLNG supplies to K-Electric, without prejudice to its rights and remedies under the GSA and applicable law.
The letter has also been sent to the Petroleum Division, Power Division, and senior officials of the Petroleum Division, including the Director General Gas (Petroleum Division).
