Gas supplies face a severe bottleneck as mounting unpaid bills threaten the stability of upstream deliveries across the country. According to Business Recorder, Sui Northern Gas Pipelines Limited (SNGPL) has raised urgent concerns over Rs169.27 billion in outstanding dues from the power sector.

Key points

  • SNGPL reported a total of Rs169.27 billion in unpaid dues from the power sector, according to Business Recorder.
  • The company warned that the financial crisis impairs its ability to meet commitments to upstream gas suppliers.
  • Gas-based power plants account for the largest share of liabilities at Rs67.268 billion.

Gas-based power plants hold the largest share of the outstanding liabilities at Rs67.268 billion, followed by WAPDA power plants owing Rs63.548 billion, and independent power producers (IPPs) with Rs38.454 billion, Business Recorder reported. The total figure comprises gas charges, RLNG tariff actualisation, take-or-pay liabilities, Gas Infrastructure Development Cess, and late payment surcharges. Specific WAPDA-affiliated plants named in the data include Guddu Power at Rs37.959 billion, Nandipur at Rs21.395 billion, Thermal Power Station Muzaffargarh at Rs1.491 billion, Gas Turbine Power Station Faisalabad at Rs2.346 billion, Gas Turbine Power Station Shahdara at Rs214 million, and Steam Power Station Faisalabad at Rs86 million.

In an official letter directed to the Chief Executive Officer of the Central Power Purchasing Agency-Guarantee (CPPA-G), SNGPL stressed the immediate need for resolution. Business Recorder noted that the company cautioned that ongoing financial constraints could result in international defaults by Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL) regarding Regasified Liquefied Natural Gas (RLNG) supplies. The communication highlights a broader liquidity crunch affecting the energy supply chain, compounded by delays in the release of wider funds.

Authorities have yet to confirm a timeline for clearing the arrears, leaving the energy sector vulnerable to supply disruptions as stakeholders await further financial interventions.