SNGPL faces severe liquidity pressure as power sector dues reach Rs174bn

Sui Northern Gas Pipelines Limited (SNGPL) is facing significant liquidity constraints as its outstanding receivables from the power sector have climbed to around Rs173.65 billion, according to official sources.

 

The gas utility has attributed the financial pressure largely to delays in payments by power-sector entities, particularly due to the slow release of funds through the Central Power Purchasing Agency-Guaranteed (CPPA-G).

 

Of the total receivables, around Rs60.99 billion is owed by government-owned power plants. This includes Rs21.50 billion in undisputed gas charges, Rs4.47 billion in RLNG tariff adjustment charges, Rs542 million in disputed gas charges and approximately Rs34.17 billion in late payment surcharges.

 

Independent power producers (IPPs) account for another Rs36.97 billion in outstanding gas-related payments. Major overdue amounts include Rs20.84 billion from Liberty Power, Rs5.12 billion from KAPCO, Rs3.19 billion from Orient Power and more than Rs2.3 billion each from Sapphire Power and Saif Power.

 

A further Rs75.70 billion is outstanding against several government-owned power plants, including QATPL, Balloki Power and NPPMCL's HBS, along with PTPL.

 

SNGPL has urged the Petroleum Division to coordinate with the Power Division for the early release of funds to power-sector entities so they can clear their liabilities to the gas utility.

 

The company has warned that prolonged delays in recovering its dues are putting its liquidity position under severe strain and affecting its ability to meet financial commitments, including payments to upstream gas suppliers.

 

SNGPL has called for immediate settlement of overdue amounts, cautioning that continued non-payment could force the company to exercise its contractual rights to recover outstanding dues.