SNGPL Warns of Possible Default as Power Sector Owes Rs169.27 Billion

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SNGPL power sector dues have climbed to Rs169.27 billion, and Sui Northern Gas Pipelines Limited has warned that the unpaid bills are straining its finances and threatening payments to its own gas suppliers.

In a letter to the Central Power Purchasing Agency Guarantee (CPPA-G), SNGPL’s chief executive sought immediate recovery of the money, saying the company’s worsening cash position was making it hard to pay upstream suppliers.

The utility warned that the backlog could disrupt the payment chain for imported regasified LNG (RLNG), potentially exposing Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL) to international payment defaults.

Who Owes SNGPL Power Sector Dues

Gas-based power plants Rs67.268 billion
WAPDA power plants Rs63.548 billion
Independent power producers (IPPs) Rs38.454 billion
Total Rs169.27 billion

Among WAPDA plants, Guddu Power owes Rs37.959 billion and Nandipur Rs21.395 billion. Among IPPs, Liberty Power has the largest unpaid amount at Rs22.642 billion, followed by KAPCO (Rs5.085 billion), Orient Power (Rs3.242 billion), Saif Power (Rs2.353 billion) and Sapphire Power (Rs2.339 billion).

The dues include unpaid gas charges, RLNG tariff adjustments, take-or-pay obligations, Gas Infrastructure Development Cess (GIDC) and late payment surcharges.

Why It Matters

The gas sector’s unpaid bills are part of Pakistan’s wider circular debt problem, where unpaid dues pass from power plants to gas companies and on to fuel importers. If SNGPL cannot pay, PSO and PLL may struggle to pay foreign LNG suppliers, which could affect future cargoes and the country’s credit standing.

What Happens Next

SNGPL has asked CPPA-G to clear the outstanding amount urgently. The power and petroleum divisions are expected to discuss a settlement plan, as delays could hit gas supplies to consumers and industry in the winter season.

For official updates, visit the SNGPL website.

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