Pakistan LNG warns K‑Electric of possible RLNG supply curtailment over Rs 6.75 bn unpaid bills
Pakistan LNG Limited (PLL) has issued a formal notice to K‑Electric (KE) stating that if the utility does not settle Rs 6.75 bn of outstanding invoices, RLNG deliveries may be reassessed, reduced or halted.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Negative · Do not buy
Power sector faces supply risk and PLL may see reduced revenue; avoid buying related stocks.
Sectors & Direction
Desk read
Desk call: Do not buy · Negatively affected
- PowerNegatively affected
- Oil & GasNegatively affected
Companies
Companies Mentioned
- PLL· Negatively affected · Do not buy
Mentions in This Briefing
Sectors: Power, Oil & Gas — Negative · Do not buy. PSX tickers: PLL. Power sector faces supply risk and PLL may see reduced revenue; avoid buying related stocks.
Full Story
Open on Business Recorder## Background
Pakistan LNG Limited (PLL) sent a letter to the Chief Executive Officer of K‑Electric (KE) on August 27, 2026, highlighting that the utility owes Rs 6.7526 billion for RLNG supplied between May and July 2026. The amount remains unpaid despite repeated follow‑ups.
## Contractual basis
PLL emphasized that all invoices were issued in strict accordance with the Gas Sale Agreement (GSA) and the Oil and Gas Regulatory Authority (OGRA)‑approved RLNG tariff. Under the GSA, KE is obligated to settle payments promptly; any unilateral withholding is deemed a breach.
## Financial exposure limits
PLL disclosed that its exposure to KE is capped by a Standby Letter of Credit (SBLC) of Rs 13.084 billion. KE has not provided an enhanced SBLC reflecting the revised tariff, limiting PLL’s ability to arrange further cargoes.
## Potential supply actions
If the outstanding dues are not cleared, PLL warned it may have to reassess, curtail, or suspend RLNG supplies to KE. The company reserved the right to pursue all remedies under the GSA and applicable law.
## Government involvement
Copies of the warning letter were also forwarded to senior officials in the Petroleum Division, the Power Division, and the Director General Gas, underscoring the regulatory attention on the dispute.