Mounting SNGPL receivables: Power Division asked to provide payment plan

Business Recorder reported that the Petroleum Division has asked the Power Division for a workable payment plan with timelines to clear mounting dues owed to Sui Northern Gas Pipelines Limited (SNGPL) for indigenous gas and RLNG. The Power Division had been due to hand over that plan by June 30, 2026, pending reconciliation of the sums involved. Sources near the Petroleum Minister conveyed the request.

The Economic Coordination Committee approved the Petroleum Division's proposals, including an escrow account for ring-fenced payments billed weekly. Indigenous gas given to RLNG-based power plants in April, May and June 2026 is priced at Rs2,000/MMBtu, and some of it was diverted from CNG users in Khyber Pakhtunkhwa, where the tariff stood at Rs3,750/MMBtu. The Petroleum Division said this rate would leave SNGPL with a revenue shortfall, and that funds could otherwise have reduced the gas-sector circular debt, which was about Rs1.8 trillion in principal at December 2025.

The Power Division responded that payment was a contractual matter under the respective gas supply agreements. It added that CPPA-G would clear energy payments to power plants subject to funds, while the plants pay SNGPL under their own agreements. Separately, PSO has Rs301 billion of receivables from RLNG sales to SNGPL, according to the report.