Government approves merger of state-run LNG companies
Energy Update Magazine/07-01-2020
ISLAMABAD: In a new development, the federal government has approved merger of two state-run LNG companies —Pakistan LNG Terminal Limited (PLTL) and Pakistan LNG Limited (PLL). Both the companies dealing with LNGwill be merged into single entity as autonomous body. According to a senior official, the new entity after the merger of the two companies will later be merged into Pakistan State Oil (PSO), as the government has not strong economic muscle to provide finances and run the newly amalgamated entity. Last year, Pakistan LNG Limited asked the government to provide $1 billion sovereign guarantee to run its operation relating to import the cargoes. The government wants, the official said, to handover on later stage the amalgamated entity to Pakistan State Oil (PSO) as it has economic muscle and does not need the government guarantee to run its operations. PSO is already running its operation from 2015 in the LNG business. According to the letter issued by Petroleum Division, signed by section officer Umer Saeed Khan, addressed to GHPL (Government Holding Private Limited) that the companies Act 2017 provides the procedure of amalgamation of two companies and as per Section 284 (2) (a) of the Companies Act 2017, the scheme of amalgamation is to be approved by resolution of the board of each amalgamating company.