SNGPL Faces Liquidity Crunch Over Rs. 174 Billion In Power Sector Dues

Sui Northern Gas Pipelines Limited is facing a liquidity crunch as its receivables from the power sector have reached Rs.

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• 75.696 billion is overdue against QATPL, Balloki Power, NPPMCL's HBS and PTPL.
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• The company's General Manager Recovery cautioned that the prolonged delay had severely affected SNGPL's liquidity and left it facing financial constraints.

According to a report by Business Recorder, the outstanding amount includes Rs. 60.989 billion owed by administration power plants, Rs. 36.969 billion by independent power producers and Rs. 75.696 billion by other government-owned power plants, according to SNGPL data. Meanwhile, the firm has attributed the delay mainly to the non-release of funds by the Central Power Purchasing Agency Guaranteed.

Among the administration power plants, Guddu Power has the largest outstanding amount at Rs. 35.240 billion, followed by Nandipur Power at Rs. 21.303 billion.

Other outstanding amounts include 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 the rented Bhikki power plant and Rs. 161 million against the rented Sharaqpur power plant.

Meanwhile, the Rs. 60.989 billion owed by these administration plants comprises Rs. 21.497 billion in undisputed gas charges, Rs. 4.465 billion in RLNG tariff actualization charges, Rs. 542 million in disputed gas charges and Rs. 34.173 billion in late payment surcharge on gas charges. SNGPL additionally noted Rs. 312 million in GIDC related amounts, including gas charges.

Among IPPs, Liberty Power has the largest outstanding balance at Rs. 20.840 billion. Other major overdue amounts include Rs. 5.118 billion against KAPCO, Rs. 3.189 billion against Orient Power, Rs. 2.327 billion against Sapphire Power, Rs. 2.341 billion against Saif Power, Rs. 1.680 billion against FKPCL and Rs. 1.327 billion against Halmore. The IPP balance additionally includes disputed charges, late payment surcharges and GIDC related amounts.

In practice, a further Rs. 75.696 billion is overdue against QATPL, Balloki Power, NPPMCL's HBS and PTPL. Their respective outstanding amounts stand at Rs. 32.228 billion, Rs. 23.737 billion, Rs. 18.379 billion and Rs. 1.352 billion. SNGPL remarked Rs. While disconnected IPP Davis Energen owed Rs, 277 million was additionally payable by disconnected WAPDA rented power units. 88 million. EV Tax Breaks Could Cost Govt Rs. 150 Billion A Year.

SNGPL has asked the Director General Gas of the Petroleum Division to take up the matter with the Power Division and seek early release of funds to WAPDA, IPPs and administration power plants.The firm stated timely payments would allow these entities to clear their liabilities to SNGPL and enable the gas utility to meet its own obligations to gas suppliers.

Meanwhile, the company's General Manager Recovery cautioned that the prolonged delay had severely affected SNGPL's liquidity and left it facing financial constraints.

He remarked the utility was unable to fulfill its commitments, including payments to upstream gas suppliers, and called on the concerned entities to clear their overdue amounts immediately. He continued that SNGPL could exercise its contractual rights to recover the outstanding dues if payments were not produced. Stay Connected with ProPakistani.

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Taken together, the developments around SNGPL Faces Liquidity Crunch Over Rs. 174 Billion In Power Sector Dues point to a situation that is still moving, and the coming days should bring more clarity.