SNGPL faces Rs 114 billion liquidity crisis due to unpaid dues from power sector

Gas utility struggles with outstanding dues from the power sector, hindering its ability to meet commitments and address financial challenges.

Sui Northern Gas Pipelines Limited (SNGPL) has reported that its outstanding dues amounted to Rs 114.287 billion from the power sector, Business Recorder reported, citing official sources. 

According to the SNGPL, power plants have expressed their inability to pay the dues because of non-payment by the Central Power Purchasing Agency (CPPA-G). The gas utility has been urged to address the matter with relevant authorities to resolve the current financial crisis.

Out of the total Rs 165.256 billion in receivables, power plants under WAPDA alone owe Rs 50.261 billion. The breakdown includes amounts for gas charges, RLNG tariff actualization charges, and Gas Infrastructure Development Cess (GIDC), as well as Late Payment Surcharge (LPS). Notable debts include Rs 30.485 billion from Guddu Power, Rs 15.716 billion from Nandipur, and Rs 1.436 billion from TPS Muzaffargarh. Smaller debts include amounts from other plants such as GTPS Faisalabad (Rs 2.267 billion) and NGPS Multan (Rs 57 million).

Additional amounts are overdue from independent power plants, including Rs 4.788 billion from Kapco, Rs 18.609 billion from Liberty Power, and Rs 12.956 billion from NPPMCL (HBS), totaling Rs 31.346 billion for government-owned power plants. The total overdue amount of Rs 114.287 billion also includes Rs 31.401 billion in RLNG tariff actualization charges and Rs 42.122 billion in LPS (gas charges).

SNGPL’s General Manager (Recovery) stated that the company’s severe financial strain has prevented it from fulfilling its obligations to upstream gas suppliers. This situation is a result of mounting receivables from the power sector, including a large share from WAPDA’s power plants.

In response to this financial distress, SNGPL has written to the concerned power sector companies, urging them to clear their outstanding dues so that the gas utility can honor its financial commitments. The company also requested CPPA-G to take urgent action to release pending amounts, which are critical for stabilizing the gas sector’s liquidity.

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