RLNG supplies: PLL issues warning to KE

ISLAMABAD - Pakistan LNG Limited (PLL) has issued a stern warning to K-Electric (KE), threatening to reassess, curtail or suspend RLNG supplies if KE fails to settle a significant outstanding debt. In a letter to KE's CEO, PLL revealed that the total unpaid principal on RLNG supplies from May to July 2026 amounted to Rs 6.7526 billion as of August 27, 2026.

Despite multiple attempts to collect the dues, KE has neither remitted payments nor responded adequately to PLL's correspondence. PLL maintains that all invoices were issued in compliance with the Gas Sale Agreement (GSA) between both parties and based on OGRA-notified RLNG tariffs. The state-owned LNG company emphasized that KE is legally obligated to settle the dues as per the agreement, and any failure to do so amounts to a breach.

PLL further noted that their RLNG supply to KE is limited by the Standby Letter of Credit (SBLC) limit of Rs 13.084 billion, which KE has yet to enhance to reflect the revised RLNG tariff. PLL warned that if KE continues to ignore the outstanding payments, they may be unable to secure further LNG cargoes, leading to a potential reassessment, curtailment, or suspension of RLNG supplies to KE.

Copies of this letter have been forwarded to the Petroleum Division, Power Division, and senior officials of the Petroleum Division, including the Director General Gas (Petroleum Division).