SNGPL faces serious liquidity crunch amid delay in release of Rs174bn

ISLAMABAD: The Sui Northern Gas Pipelines Limited (SNGPL) is reportedly facing a serious liquidity crunch due to outstanding dues of around Rs 174 billion against the power sector, mainly owing to delayed release of funds by the Central Power Purchasing Agency-Guaranteed (CPPA-G), official sources told Business Recorder. According to the SNGPL, its total receivables from the power sector stand at Rs 173. 654 billion. Of this, Rs 35. 240 billion is outstanding against Guddu Power, Rs 21. 303 billion against Nandipur Power, Rs 1. 482 billion against TPS Muzaffargarh, Rs 2. 330 billion against GTPS Faisalabad, Rs 214 million against GTPS Shahdara, Rs 86 million against SPS Faisalabad, Rs 57 million against NGPS Multan, Rs 116 million against rented power plant Bhikki and Rs 161 million against rented power plant Sharaqpur. The total outstanding dues against government power plants amount to Rs 60. 989 billion. Of this, Rs 21. 497 billion comprises undisputed gas charges, Rs 4. 465 billion RLNG tariff actualisation charges, Rs 542 million disputed gas charges and Rs 34. 173 billion in late payment surcharge (LPS) on gas charges. READ MORE: Mounting SNGPL receivables: Power Division asked to provide payment plan The SNGPL said total gas charges, including LPS, amounted to Rs 60. 173 billion, while the addition of Rs 312 million on account of GIDC, including gas charges, has taken the total outstanding amount to Rs 60. 989 billion. Cumulative gas charges outstanding against independent power producers (IPPs) stand at Rs 36. 969 billion. These include Rs 5. 118 billion against KAPCO, Rs 59 million against Engro Energy, Rs 20. 840 billion against Liberty Power, Rs 3. 189 billion against Orient Power, Rs 1. 680 billion against FKPCL, Rs 2. 327 billion against Sapphire Power, Rs 2. 341 billion against Saif Power, Rs 88 million against Davis Energen and Rs 1. 327 billion against Halmore. The total outstanding amount of Rs 36. 969 billion also includes disputed gas charges, LPS on gas charges and GIDC, including LPS. The SNGPL further stated that Rs 32. 228 billion is overdue against QATPL, Rs 23. 737 billion against Balloki Power, Rs 18. 379 billion against NPPMCL’s HBS and Rs 1. 352 billion against PTPL, bringing the total outstanding amount against these government-owned power plants to Rs 75. 696 billion. Of the total outstanding amount of Rs 173. 654 billion, Rs 277 million is payable by disconnected WAPDA rented power units, namely Bhikki and Sharaqpur, while Rs 88 million is outstanding against disconnected IPP Davis Energen. The SNGPL has requested the Director General (Gas), Petroleum Division, to take up the matter with the Power Division for early release of funds to WAPDA, IPPs and government power plants, enabling them to discharge their respective liabilities towards the SNGPL and allowing the gas utility to honour its commitments to gas suppliers. “Inordinate delay in release of outstanding amount has badly affected SNGPL’s liquidity position due to which we are facing financial constraints and are unable to fulfil our commitments, including payments to upstream gas suppliers, ” the SNGPL general manager (Recovery) said. He also urged the concerned entities to clear their overdue amounts immediately to avoid any untoward situation at a later stage. He warned that in case of non-payment, the SNGPL would be constrained to exercise its contractual rights for recovery of outstanding dues. Copyright Business Recorder, 2026

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