SNGPL Warns of Payment Crisis as Electricity Sector Bills Hit Rs. 169 Billion

Sui Northern Gas Pipelines Limited (SNGPL) has cautioned that unpaid electricity sector bills totaling Rs.

Key points

• In another letter dated October 8, 2026, addressed to the Chief Executive Officer of Northern Power Generation Firm Limited (NPGCL), TPS Muzaffargarh, SNGPL demanded payment of Rs.
• While disconnected IPP Davis Energen owes another Rs, 277 million in unpaid dues against disconnected WAPDA rented power units Bhikki and Sharaqpur.
• The outstanding liabilities include unpaid gas charges, RLNG tariff adjustments, take or pay obligations, Gas Infrastructure Development Cess (GIDC) and late payment surcharges.
• Within the WAPDA power generation fleet, Guddu Power has outstanding liabilities of Rs.

Sui Northern Gas Pipelines Limited (SNGPL) has cautioned that unpaid electricity sector bills totaling Rs. 169.27 billion are putting its finances under severe strain and threatening payments to its own gas suppliers.

In practice, the firm states the growing payment backlog could disrupt the chain of payments for imported regasified liquefied natural gas (RLNG), potentially exposing Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL) to international payment defaults.

In a letter to the Central Power Purchasing Agency Guarantee (CPPA-G), SNGPL's Chief Executive Officer sought immediate recovery of the outstanding amount, warning that the utility's worsening liquidity position was making it increasingly tough to meet financial obligations to upstream suppliers.

In practice, the outstanding liabilities include unpaid gas charges, RLNG tariff adjustments, take or pay obligations, Gas Infrastructure Development Cess (GIDC) and late payment surcharges. Gas-based power plants account for Rs. While WAPDA power plants owe Rs, 67.268 billion of the total. 63.548 billion and independent power producers (IPPs) have accumulated another Rs. 38.454 billion. Iran War Is 'Effectively Over', No New Strikes Needed: Trump. Gas Based Power Plants Account For Largest Dues.

Within the WAPDA power generation fleet, Guddu Power has outstanding liabilities of Rs. 37.959 billion, followed by Nandipur with Rs. 21.395 billion. Other unpaid amounts include Rs. 2.346 billion against GTPS Faisalabad, Rs. 1.491 billion against TPS Muzaffargarh, Rs. 214 million against GTPS Shahdara, Rs. 86 million against SPS Faisalabad and Rs. 57 million against NGPS Multan.

Among independent power producers, Liberty Power accounts for the largest outstanding amount at Rs. 22.642 billion. Other major defaulters include KAPCO with Rs. 5.085 billion, Orient Power with Rs. 3.242 billion, Saif Power with Rs. 2.353 billion, Sapphire Power with Rs. 2.339 billion, FKPCL with Rs. 1.370 billion and Halmore Power with Rs. 1.316 billion. Smaller outstanding amounts include Rs. 88 million against Davis Energen and Rs. 59 million against Engro Energy.

For context, the arrears against gas based power plants include Rs. 30.062 billion against QATPL, Rs. 22.701 billion against NPPMC's Baloki plant, Rs. 12.476 billion against NPPMC's HBS plant and Rs. 2.029 billion against PTPL. Oil Rates Crash 7%. SNGPL Seeks Urgent Administration Intervention.

SNGPL has attributed the growing arrears either to insufficient fund releases by CPPA-G to the power sector or nonpayment by individual power plants. In a separate communication to the Director General Gas at the Petroleum Division, the firm requested intervention to secure an early release of funds and facilitate settlement of outstanding liabilities.

For context, the utility additionally noted Rs. While disconnected IPP Davis Energen owes another Rs, 277 million in unpaid dues against disconnected WAPDA rented power units Bhikki and Sharaqpur. 88 million. SNGPL has asked the Petroleum Division to take up the matter with the Power Division to expedite payments.

In another letter dated October 8, 2026, addressed to the Chief Executive Officer of Northern Power Generation Firm Limited (NPGCL), TPS Muzaffargarh, SNGPL demanded payment of Rs. 25.006 billion owed by various power sector consumers. The amount includes outstanding liabilities against Nandipur, TPS Muzaffargarh, GTPS Faisalabad, GTPS Shahdara, SPS Faisalabad and NGPS Multan. LPG Rates Jump 80% in Pakistan. Gas Utility Warns Of Further Recovery Action.

SNGPL remarked the accumulated arrears have severely weakened its liquidity position and restricted its ability to meet financial commitments, particularly payments to upstream gas suppliers.

Meanwhile, the firm has called on power sector entities to immediately clear overdue amounts, warning that it may exercise its contractual recovery rights if payments remain outstanding.

Meanwhile, the correspondence highlights growing financial pressure throughout Pakistan's gas supply chain, where unpaid electricity sector liabilities are affecting the ability of gas utilities to meet obligations to their own suppliers. SNGPL has pressed priority intervention by the Petroleum Division, Power Division and CPPA-G to prevent further deterioration and avert a potential disruption in the payment chain for imported RLNG. Stay Connected with ProPakistani.

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For now, SNGPL Warns of Payment Crisis as Electricity Sector Bills Hit Rs. 169 remains the part of the story worth watching, and further updates are likely as more details are confirmed.