Sui Northern Gas Pipeline Limited (SNGPL) is grappling with a substantial liquidity challenge, revealing outstanding dues of Rs176.302 billion attributed to the power sector.
The disclosed amount includes an undisputed sum of Rs76.749 billion, encompassing disputed gas charges of Rs34.485 billion and Late Payment Surcharge (LPS) on gas charges totaling Rs62.866 billion. With an additional Rs2.202 billion for Gas Infrastructure Development Cess (GIDC), including LPS, the overall receivables amount to Rs176.302 billion.
Among the entities contributing to these receivables, notable figures include Rs33.329 billion owed by Guddu Power, Rs16.769 billion by Nandipur, Rs1.235 billion by TPS Muzaffargarh, Rs175 million by GTPS Shahdara, Rs92 million by SPS Faisalabad, Rs56 million by NGPS Multan, Rs116 million by Rented Power Bhikki, and Rs161 million by Rented Power Sharqpur, culminating in Rs53.497 billion.
Entities like Kapco, Engro Energy, and Liberty Power collectively hold an undisputed amount of Rs16.835 billion. However, the outstanding sum against multiple entities, including Kapco, Engro Energy, Liberty Power, Orient Power, FKPCL, Sapphire Power, Saif Power, Davis Energen, and Halmore, stands at Rs26.586 billion.
The Chief Financial Officer of SNGPL expressed deep concern about the company’s sustainability, highlighting the adverse impact on its financial structure. He emphasized that the liquidity crisis, exacerbated by delayed fund releases from the power sector, has hindered the company’s ability to meet its commitments, including payments to upstream gas suppliers.
In response to this challenging scenario, SNGPL has formally appealed to the Petroleum Division to intervene. The company urges the division to engage with the Power Division, advocating for the prompt release of funds to WAPDA, Independent Power Producers (IPPs), and Government Power Plants (GPPs).
SNGPL believes that an expedited fund release to these entities will empower them to settle their liabilities, subsequently enabling the company to fulfill its commitments to gas suppliers.?