SNGPL faces financial turmoil with Rs148.5 billion in outstanding dues from power sector

ISLAMABAD: Sui Northern Gas Pipelines Limited (SNGPL) has announced that it is grappling with a significant liquidity crisis, attributed to outstanding dues amounting to Rs 148.5 billion from the power sector.

The company warns that the current financial predicament could threaten its sustainability and compromise its overall financial stability, reported the Business Recorder.

The company says it is struggles to meet commitments to upstream gas suppliers due to the considerable arrears owed by the power sector. Of the total dues, Rs29.403 billion is owed by Guddu Power, followed by Nandipur with Rs9.821 billion, TPS Muzaffargarh at Rs1.355 billion, GTPS Faisalabad with Rs1.788 billion, and GTPS Shahdra at Rs175 million.

Other significant amounts include SPS Faisalabad (Rs93 million), NGPS Multan (Rs56 million), rented power units at Bhikki (Rs116 million) and Sharqpur (Rs161 million), totalling Rs42.968 billion.

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SNGPL has specified that Rs35.294 billion of this amount is undisputed.

In contrast, disputed gas charges total Rs34.344 billion, with a Late Payment Surcharge (LPS) on gas charges amounting to Rs78.088 billion, bringing total receivables to Rs147.726 billion. When including Rs688 million for Gas Infrastructure Development Cess, the total reaches Rs148.414 billion.

The undisputed amounts against other power entities include Rs13 million from Kapco, Rs786 million from Engro Energy, and Rs17.033 billion from Liberty Power.

The cumulative outstanding debt from these and other companies, such as Orient Power, FKPCL, and Sapphire Power, totals Rs17.836 billion.

Additionally, Rs277 million is owed from disconnected WAPDA rented power units (Bhikki and Sharqpur), with further outstanding amounts of Rs77 million from WAPDA disconnected units and Rs88 million from the disconnected IPP, Davis Energen.

The company has urged the Directorate General (Gas) at the Petroleum Division to engage with the Power Division to expedite the release of funds to WAPDA, IPPs, and Government Power Plants (GPPs) so that they can settle their debts to SNGPL, allowing the company to meet its obligations to gas suppliers.