Transfers a palmitate residue from the sn-1 position of a phospholipid to the N-linked hydroxymyristate on the proximal unit of lipid A or its precursors. 1-hexadecanoyl-2-acyl-sn-glycero-3-phosphocholine + lipid A (E. coli) = a 2-acyl-sn-glycero-3-phosphocholine + hepta-acyl lipid A 1-hexadecanoyl-2-acyl-sn-glycero-3-phosphocholine + lipid IIA = a 2-acyl-sn-glycero-3-phosphocholine + lipid IIB 1-hexadecanoyl-2-acyl-sn-glycero-3-phosphocholine + lipid IVA (E. coli) = a 2-acyl-sn-glycero-3-phosphocholine + lipid IVB Homodimer. Belongs to the lipid A palmitoyltransferase family. This gene is probably a pseudogene. In contrast to other members of the family, Y.pestis PagP is truncated by a deletion of the last three amino acid residues which contribute to key hydrogen bonds in the inner leaflet exposed region. Consequently, it seems highly unlikely that the truncated PagP is capable of folding into a beta-barrel in the outer membrane (OM). Extended N-terminus. Extended N-terminus.