SNGPL alleges CPPA-G of Rs148 billion payment backlog, warns of financial strain  

Gas company highlights liquidity crisis due to delays in power sector payments  

Sui Northern Gas Pipelines Limited (SNGPL) has held the Central Power Purchasing Agency–Guaranteed (CPPA-G) responsible for accumulating a massive Rs148 billion in unpaid dues owed by independent power producers (IPPs) and government-owned power plants, including WAPDA facilities.  

According to a news report, SNGPL has outlined the scale of receivables in its communication with the Petroleum Division. The Guddu Power Plant owes Rs30.344 billion, including an undisputed Rs10.513 billion and Rs19.555 billion in disputed gas charges, alongside Rs277 million under Gas Infrastructure Development Cess (GIDC) and late payment surcharges (LPS).  

Other notable liabilities include Rs18.405 billion owed by Nandipur Power Plant, Rs1.334 billion by the Thermal Power Station Muzaffargarh, Rs1.770 billion by the Gas Thermal Power Station Faisalabad, and smaller amounts from other plants such as Bhikki and Sharqpur rental power units.  

The total receivables from nine power plants amount to Rs52.453 billion, comprising Rs20.682 billion in undisputed amounts, Rs541 million in disputed charges, Rs30.924 billion in LPS, and Rs306 million under GIDC.  

Receivables from IPPs total Rs25.107 billion, with major contributors including Liberty Power (Rs16.692 billion), Kot Addu Power Plant (Rs2.250 billion), and Engro Energy (Rs1.643 billion). Of this, Rs17.206 billion is undisputed, while Rs6.409 billion relates to LPS, Rs1.110 billion to disputed charges, and Rs382 million to GIDC.  

Government-owned power plants owe Rs65.212 billion, with significant dues from QATPL (Rs19.116 billion), National Power Parks Management Company Limited Baloki (Rs21.482 billion), and Haveli Bahadur Shah (Rs24.614 billion).  

SNGPL has attributed the liquidity crisis to CPPA-G’s insufficient fund releases to the power sector. 

“The state of affairs is detrimental to the company’s sustainability and may jeopardize its financial structure,” noted the company’s General Manager for Recovery in a letter to the Petroleum Division.  

To address these challenges, SNGPL urged swift fund disbursements to enable it to meet its payment obligations to upstream gas suppliers. 

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