Pakistan’s LNG supply in winter at risk amid reports of PSO’s liquidity crisis

Pakistan’s LNG supply in winter is at risk amid reports of PSO’s liquidity crisis!

As reported, the worsening liquidity situation of PSO and non-payment of dues from SNGPL has put the LNG supply at risk.

As reported, the state-owned Pakistan State Oil’s (PSO) liquidity crisis has swooped to an all-time high with an unprecedented hike in its receivables to Rs621.168 billion and payable to Rs268.5 billion.

A senior official at the Ministry of Energy told The News that the situation has resulted in the company being unable to offload its liabilities with regard to letters of credit (LCs) amounting to Rs218.5 billion for the import of furnace oil and LNG.

The News Publication quoted that the non-payment of a mammoth amount of Rs400.258 billion by Sui Northern Gas Pipelines Limited (SNGPL) under the head of LNG imports has emerged as the major headache for PSO. 

On the other hand, an insider source has shared that PSO intimidated the Petroleum Division on November 1, claiming that its borrowing limit has already reached the maximum level and if the situation continues unabated, hence PSO will not be able to further borrow the finances to maintain the LNG supply in future.

The official also disclosed that PSO wants the intervention of the Petroleum Division to keep the receivables from SNGPL in check and to this effect an implementation of the payment plan as was earlier agreed with SNGPL needs to be met in letter and spirit.