ISLAMABAD: Despite a warning from Sui Northern Gas Pipelines Limited (SNGPL) regarding the suspension of gas supply due to non-payment of outstanding dues exceeding Rs 19 billion, Liberty Daharki Power Limited (LDPL) has expressed its inability to settle the amount on time, due to limited payments received from the Central Power Purchasing Agency (CPPA-G), sources informed Business Recorder.
In a letter to SNGPL’s General Manager (Recovery), Zafar Iqbal, dated February 24, 2025, Chief Executive Officer (CEO) of LDPL, Emran Ahmed Khan, referred to a final notice received from SNGPL on February 20, 2025.
The notice demanded clearance of all outstanding dues, which amounted to Rs 19.720 billion (including Rs 18.381 billion in gas charges and Rs 1.339 billion in Late Payment Surcharge, or LPS), to be settled by February 27, 2025.
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In response, LDPL stated that it had made an additional payment of Rs 150 million to SNGPL, on top of Rs 2.313 billion paid from January 2025 to February 25, 2025, toward the outstanding gas charges.
According to LDPL, the remaining balance owed to SNGPL was Rs 13.712 billion in gas charges and Rs 4.285 billion in LPS, totaling Rs 17.997 billion.
LDPL’s CEO explained that the difference in the outstanding balances arose from SNGPL’s unilateral decision to adjust LDPL’s payments against LPS for the year 2023.
He argued that this approach contradicted both the payment instructions from LDPL and the previous payment practices between the two companies before 2023. LDPL has requested that this unilateral adjustment be reversed to reconcile the balances.
The power generation company further noted that it was in continuous discussions with CPPA-G for additional payments, which would enable timely settlement of SNGPL’s dues.
However, the company explained that during the winter months, CPPA-G does not make substantial payments due to lower electricity consumption, which results in reduced collections. As a result, LDPL is unable to meet the outstanding payments within the limited time frame stipulated in SNGPL’s notice.
In its letter of February 20, 2025, SNGPL had acknowledged LDPL’s assurance to make substantial payments against the outstanding receivables and current gas bill dues. However, SNGPL pointed out that only Rs 2.313 billion had been paid by LDPL between January 25 and February 20, 2025.
SNGPL further highlighted that the outstanding dues had accumulated to Rs 19.720 billion, far exceeding the held cash security deposit of Rs 3.085 billion.
In accordance with the gas supply contract, specifically clause (D) of Article V, SNGPL noted that LDPL is obligated to clear all dues within 30 days of receiving an invoiced amount. Should the outstanding dues remain unpaid, SNGPL has the right to suspend the gas supply after giving a seven-day written notice.
SNGPL has demanded that LDPL clear all outstanding dues by February 27, 2025. Failure to comply, the gas utility warned, would compel SNGPL to exercise its contractual right to suspend gas supply to the power plant without further notice.
Copyright Business Recorder, 2025