Thursday April 18, 2024

Decision taken not to merge state-owned LNG entities

By Khalid Mustafa
April 10, 2020

ISLAMABAD: The meeting on strategy on how to merge state-owned LNG entities was held here on Thursday with secretary Petroleum Division in the chair but it surprisingly decided not to merge the Pakistan LNG Limited (PLL) and Pakistan LNG Terminal Limited ostensibly against the federal government's decision taken six months back in favor of merger of the two entities.

The federal cabinet had decided the merger of two entities based on the facts that their many functions overlap with each other and more importantly their expenses are unjustified and the said companies always seek government financial guarantees. Had the said companies been merged, then their expenses which LNG consumers pay in the tariff would have considerably lowered, but unfortunately the meeting didn’t take the required decision.

Now after six months since the federal cabinet took the decision, a meeting was held which was attended by government nominated directors in board of directors of both 100 percent state-owned companies — PLL and PLTL, and chairmen of both the BoDs, but it came up with the decision not to merge the two companies unless the two boards come to the conclusion that it is in the best national interest to merge.

The two boards will further deliberate on this issue and another meeting will be held after a month to discuss the merger issue again. However, one of the government nominated directors told The News that most likely no merger was going to happen.