Power sector owes Rs148.5bn dues: SNGPL says facing ‘grievous’ liquidity crisis

ISLAMABAD: Sui Northern Gas Pipelines Limited (SNGPL) said that it is facing grievous liquidity issues due to alarming level of outstanding dues of Rs 148.5 billion against the power sector.

“The company informed that current state of affairs is detrimental for their sustainability and may jeopardize the overall financial structure of the company.

SNGPL added that due to huge amount outstanding from power sector, they are facing grievous liquidity crisis and unable to discharge its commitments towards upstream gas suppliers,“ said, Directorate General (Gas)

Rs148bn receivables: SNGPL holds CPPA-G responsible

Out of Rs 148.5 billion, receivables against Guddu Power stood at Rs 29.403 billion, Nandipur Rs 9.821 billion, TPS Muzaffargarh Rs 1.355 billion, GTPS Faisalabad, Rs 1.788 billion, GTPS Shahdra Rs 175 million, SPS Faisalabad Rs 93 million, NGPS Multan Rs 56 million, Rented Power Bhikki Rs 116 million and Rented Power Sharqpur Rs 161 million, totaling to Rs 42.968 billion.

According to SNGPL, undisputed amount is Rs 35.294 billion. Disputed gas charges comprise Rs 34.344 billion, Late Payment Surcharge (LPS) on gas charges is Rs 78.088 billion, totaling to Rs 147.726 billion. After addition of Rs 688 million on account of GIDC including LPS, total receivables stand at Rs 148.414 billion.

Total undisputed amount of Rs 13 million is against Kapco, Engro Energy, Rs 786 million and Liberty Power Rs 17.033 billion. However, cumulative outstanding amount against Kapco, Engro Energy and Liberty Power, Orient Power, FKPCL, Sapphire Power, Saif Power, Davis Energen and Halmore stood at Rs 17.836 billion.

In a letter to Directorate General (Gas) Petroleum Division) General Manager (Recovery) SNGPL, maintained that Rs 277 million is outstanding against disconnected Wapda rented power units, ie, Bhikki and Sharqpur and Rs 77 million is outstanding against WAPDA disconnected rented units, ie, Bhikki and Sharqpur and Rs 88 million is outstanding against disconnected IPP- Davis Energen .

“SNGPL is facing grievous liquidity crisis and due to delayed release of funds by power sector and is now unable to discharge its commitments that include payments to upstream gas suppliers,” he continued.

Keeping the severity of the issue in mind, SNGPL has requested Directorate General (Gas) Petroleum Division to take up the matter with Power Division for early release of funds to WAPDA, IPPs and GPPs (Government Power Plants) enabling them to discharge their respective liabilities towards SNGPL so that the company can honour its commitments to gas suppliers.

Copyright Business Recorder, 2025