Sui Northern Gas Pipelines Limited (SNGPL) has warned of a worsening liquidity crisis due to unpaid dues from the power sector amounting to Rs148.5 billion. The company has cautioned that the financial strain threatens its ability to fulfill obligations to upstream gas suppliers, jeopardizing its overall stability.
According to a report submitted to the Directorate General (Gas), SNGPL outlined that a substantial portion of its receivables, Rs42.96 billion, is owed by power producers, including Guddu Power (Rs29.4 billion), Nandipur (Rs9.8 billion), and other generation plants.Â
Additionally, Rs35.3 billion is classified as undisputed dues, while Rs34.3 billion falls under disputed gas charges. Late payment surcharges have further compounded the crisis, adding Rs78 billion to the total outstanding amount.
The company has also listed Rs17.83 billion in outstanding dues against independent power producers, including Liberty Power (Rs17 billion), Engro Energy (Rs786 million), and others. Furthermore, Rs277 million remains unpaid by disconnected WAPDA rental power units at Bhikki and Sharqpur, while Rs88 million is due from the defunct Davis Energen plant.
In a letter to the Directorate General (Gas), SNGPL emphasized that delayed payments from the power sector have left it unable to meet its financial commitments, particularly to gas suppliers. Given the severity of the issue, the company has urged the Petroleum Division to engage with the Power Division for an expedited release of funds to WAPDA, independent power producers (IPPs), and government power plants (GPPs), enabling them to settle dues with SNGPL.
The company stressed that immediate action is needed to prevent further financial strain and ensure uninterrupted gas supply to the energy sector.
