PLL Warns K-Electric Over Rs6.75bn Outstanding RLNG Dues

Pakistan LNG Limited (PLL) has warned K-Electric (KE) that it could review, reduce or suspend re-gasified liquefied natural gas (RLNG) supplies if the power utility fails to clear outstanding payments of around Rs6.75 billion.

 

In a letter to K-Electric’s chief executive officer, PLL said the principal amount outstanding for RLNG supplied between May and July 2026 stood at Rs6.7526 billion as of August 27, 2026.

 

PLL said that despite repeated reminders, K-Electric had neither paid the outstanding amount nor provided a substantive response regarding the overdue receivables.

 

The state-owned LNG supplier maintained that all invoices were issued in accordance with the Gas Sale Agreement (GSA) between the two companies and were calculated using the RLNG tariff notified by the Oil and Gas Regulatory Authority (OGRA).

 

PLL stressed that compliance with the GSA was mandatory and that K-Electric was required to settle payments according to the agreed terms. It said withholding payments unilaterally would constitute a breach of the agreement.

 

The company also said its ability to continue RLNG supplies was being constrained by the financial exposure allowed under K-Electric’s existing Standby Letter of Credit (SBLC) limit of Rs13.084 billion.

 

According to PLL, despite several requests, K-Electric had not submitted an increased SBLC reflecting the revised RLNG tariff.

 

PLL warned that if the payment and SBLC issues remained unresolved, it could face difficulties arranging additional LNG cargoes. As a result, the company may reassess, curtail or suspend RLNG supplies to K-Electric, while retaining all rights and remedies available under the GSA and applicable laws.

 

PLL once again called on K-Electric to immediately clear the outstanding dues.

 

Copies of the letter were also sent to the Petroleum Division, Power Division and senior officials, including the Director General Gas of the Petroleum Division.