SNGPL faces liquidity crisis of Rs176bn outstanding dues, appeals for urgent action – Wajobz

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Sui Northern Gas Pipeline Limited (SNGPL) has reported a significant liquidity challenge, citing outstanding dues of Rs176.302 billion owed by the power sector.

According to SNGPL, as reported by BR, the undisputed amount is Rs76.749 billion, comprising disputed gas charges of Rs34.485 billion and Late Payment Surcharge on gas charges amounting to Rs62.866 billion. After the addition of Rs2.202 billion on account of GIDC, including LPS, total receivables stand at Rs176.302 billion.

Receivables against various entities include Rs33.329 billion for Guddu Power, Rs16.769 billion for Nandipur, Rs 1.235 billion for TPS Muzaffargarh, Rs175 million for GTPS Shahdra, Rs92 million for SPS Faisalabad, Rs56 million for NGPS Multan, Rs116 million for Rented Power Bhikki, and Rs161 million for Rented Power Sharqpur, totaling Rs53.497 billion.

Among the entities with outstanding amounts, the total undisputed amount of Rs16.835 billion is against Kapco, Engro Energy, and Liberty Power. However, the total outstanding amount against several entities, including Kapco, Engro Energy, Liberty Power, Orient Power, FKPCL, Sapphire Power, Saif Power, Davis Energen, and Halmore, is Rs26.586 billion.

The Chief Financial Officer of SNGPL emphasized that Rs277 million is outstanding against disconnected Wapda rented power units (Bhikki and Sharqpur), and Rs77 million is outstanding against disconnected IPP-Davis Energen.

Expressing concern about the company’s sustainability, he stated, “The current situation is detrimental to the sustainability of the company and may jeopardize the overall financial structure of the company. SNGPL is facing a grievous liquidity crisis due to the delayed release of funds by the power sector and is now unable to discharge its commitments, including payments to upstream gas suppliers.”

In response to the challenging situation, SNGPL has formally requested the Petroleum Division to intervene and address the matter with the Power Division, urging an early release of funds to WAPDA, IPPs, and GPPs (Government Power Plants). This, they believe, will enable these entities to fulfill their respective liabilities towards SNGPL, allowing the company to honor its commitments to gas suppliers.

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