Key Takeaways
- Pakistan LNG Limited (PLL) has warned K-Electric (KE) of potential RLNG supply cessation due to outstanding dues.
- The outstanding amount is Rs8.7 billion, comprising Rs8.5 billion in principal and Rs0.2 billion in late payment surcharge.
- KE is withholding payments while seeking adjustment of amounts it believes are recoverable under a proposed weighted-average pricing mechanism.
Pakistan LNG Limited (PLL) has issued a stern warning to K-Electric (KE) that it may cut RLNG supplies if the power utility fails to clear its outstanding Rs8.7 billion dues immediately, according to a letter dated September 8, 2026.
The warning comes amid a dispute between the two entities over the application of a proposed weighted-average or pooled RLNG pricing mechanism, with KE withholding payments while seeking adjustments.
According to PLL, the NCMC had issued two separate and independent directions: one relating to the examination of a pooled pricing proposal, and the other requiring KE to clear its outstanding dues on priority and ensure uninterrupted Debt Servicing Surcharge (DSS) payments.
KE has adopted the direction concerning pooled pricing while disregarding the separate direction requiring settlement of its outstanding dues, according to PLL.
Regarding the proposed weighted-average pricing mechanism, PLL maintained that the NCMC direction merely required stakeholders to jointly examine the proposal and submit recommendations, not an approved mechanism.
PLL clarified that under the Gas Sale Agreement (GSA), invoicing is governed by the RLNG price notified by the Oil and Gas Regulatory Authority (OGRA), and any revised pricing mechanism could take effect only after issuance of guidelines by the Economic Coordination Committee (ECC) and subsequent notification by OGRA.
KE’s own Annexure-A described its calculations as provisional and subject to OGRA notification, which, according to PLL, confirmed that no adjustment was currently due.
PLL assured KE that once the proposed mechanism was formally approved and notified, it would issue credit notes to KE in accordance with the applicable pricing settlements with SNGPL.
The company stressed that the NCMC direction requiring KE to clear its dues on priority was unconditional and did not require any further approval, and was not contingent upon the approval of the proposed pooled pricing mechanism.
