ISLAMABAD : K-Electric (KE) has reportedly asked the Power Division to expedite the implementation of the agreed RLNG pricing mechanism, seeking continued support and coordination with Petroleum Division, OGRA, SNGPL and Pakistan LNG Limited ( PLL) to facilitate the timely issuance of the revised notifications based on the agreed unified /weighted-average RLNG pool pricing mechanism
In letters to the concerned authorities, Chief Financial Officer (CFO), KE, Aamir Ghaziani has clarified position of power utility company with respect to payment of RLNG to PLL.
KE’s CFO, in one of is letter has cited reference to your letter of September 1, 2026 of PLL and Petroleum Division’s letter of August 13, 2026, regarding the RLNG Supply payments from K-Electric Limited .
KE has clarified that there has been no delay or default on its part regarding payments for RLNG supplied by PLL and reiterated that the National Coordination and Management Council (NCMC), in its meeting held on July 1, 2026 attended by relevant stakeholders including KE, agreed to the implementation of a unified/weighted-average RLNG pool pricing mechanism under the prevailing force majeure conditions.
According to Ghaziani, KE has already requested Power Division in its letter of July 27, 2026 to support for expediting the implementation of the stipulated mechanism, so that pricing and payments can be reconciled with the effect from May 2026.
In view of the current scenario, KE has stated that since the agreed pricing mechanism is in the process of being implemented, KE is making payments for RLNG supplied based on the actual gas mix received as also discussed in the NCMC Meeting.
The power utility company has conveyed that upon implementation of the agreed mechanism, pricing and payments will require reconciliation for May 2026 onwards. Based on payments made to date and upon implementation of the unified pool pricing mechanism, KE’s position is that it has already paid approximately Rs 4.2 billion in excess, for which KE expects to receive a corresponding credit note.
In this regard, KE has reiterated its request to the Power Division to expedite the implementation of the agreed pricing mechanism and respectfully seek continued support and coordination with Ministry of Energy (Petroleum Division), OGRA, SNGPL and PLL to facilitate the timely issuance of the revised notifications based on the agreed unified /weighted-average RLNG pool pricing mechanism. KE remains committed to the timely implementation of the agreed pricing mechanism and reconciling the amounts accordingly.
In another letter, Ghaziani has cited reference yo PLL’s letters of July 24, 2026, July 28, 2026, and August 27, 2026, regarding the outstanding payment for RLNG supply.
He has referred to a meeting of the executive committee of the National NCMC held on July 1, 2026 which was attended by KE along with other relevant stakeholders. During the meeting, a unified/weighted-average RLNG pool pricing mechanism was agreed to be implemented under the prevailing Force Majeure conditions, by all the relevant stakeholders. In this regard, KE has also written to the Power Division requesting that the implementation of the agreed pricing mechanism be expedited, so that the pricing and payments can be reconciled with effect from May 2026 onwards.
In this connection, PLL’s view as reflected in its letter of July 28, 2026, that the NCMC directed KE to clear dues based on previous pricing, is contrary to the discussions held in the NCMC meeting.
” Since agreed mechanism of pricing is in the process of being implemented, KE is making payments for RLNG supplied on the basis of the actual gas mix received as also discussed in the NCMC meeting. Upon implementation of the agreed mechanism, pricing and payments will require reconciliation for May 2026 onwards, he continued.
” There has been no delay or default on the part of KE in respect of its payment obligations. Accordingly, it would be inappropriate for PLL to levy Late Payment Surcharge or pursue other measures against KE at this stage, particularly while the pricing mechanism agreed at the NCMC meeting is in the process of implementation, ” Ghaziani maintained .
With respect to the additional SBLC requirement, KE reiterated that agreed unified/weighted-average RLNG pool pricing mechanism is in the process of being implemented, and the corresponding revised notifications are awaited.
” We will review the impact and engage with PPL accordingly once the revised notifications are issued,” he said adding that PLL should provide an update regarding the status of outstanding RLNG price notifications from February 2022 onwards, pursuant to which a further credit note is expected to be issued upon issuance of the corresponding notifications. Ends
