Press Release
VIS Reaffirms Entity Ratings of PGP Consortium Limited
Karachi, Oct 07, 2025: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of PGP Consortium Limited at ‘A/A2’ (Single A /A two). Medium to long term rating of ‘A’ indicates Good credit quality; Protection factors are adequate. Risk factors may vary with possible changes in the economy. Short term rating of 'A2' indicates Good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned ratings remain ‘Stable’. Previous rating action was announced on September 10, 2024.
PGP Consortium Limited (‘PGPC’ or ‘The Company’) is a wholly owned subsidiary of Pakistan GasPort Limited (PGPL), established as a Special Purpose Vehicle (SPV) for the execution of country’s second and largest LNG terminal project awarded to PGPL by Pakistan LNG Limited (‘PLL’, formerly Pakistan LNG Terminals Ltd ‘PLTL’). The Company has a long-term Operations and Services Agreement with PLL for the availability of 600 MMSCFD LNG regassification capacity (i.e., the conversion of LNG into RLNG on a tolling basis) on a ‘take or pay’ basis, which ensures guaranteed revenues and cash flow backed by the provision of a revolving Standby Letter of Credit (SBLC). The Company’s terminal is located at Mazhar point, Hafeez Island, Port Qasim.
The assigned ratings reflect PGPC’s strong business risk profile, supported by its position as one of only two LNG regasification terminals in the country, making it a strategic national asset. While the LNG sector faces demand-side challenges, PGPC’s exposure is mitigated through a long-term take-or-pay capacity contract that ensures stable cash flows regardless of throughput. Currency risk is limited given the dollar-denominated nature of both revenues and costs, while long-term agreements with Pakistan LNG Limited (PLL), BW FSRU II Pte Limited, BW Fleet Management AS and Fauji Oil Terminal and Distribution Company Limited (FOTCO) provide additional operational stability.
Meanwhile, the financial risk profile is characterized by stable topline growth, and a manageable capitalization structure (lease adjusted) which is expected to remain stable in absence of significant capex requirements. Liquidity and coverage remain adequate, with DSCR at comfortable level of 1.65x as of 9MFY25. Looking ahead, sustaining capital structure and coverages alongside improvement in liquidity indicators will remain important from ratings perspective.
For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Industrial Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf