SNGPL faces liquidity crunch as power sector dues hit Rs173.65 billion

Business Recorder, citing official sources, reports that Sui Northern Gas Pipelines Limited (SNGPL) is short of cash as receivables from the power sector have reached Rs173.654 billion. The shortfall is now restricting the gas utility's ability to pay upstream gas suppliers.

The company puts the pressure mainly on delayed fund releases by CPPA-G and has asked the Petroleum Division to step in for early clearance. Government power plants owe Rs60.989 billion, with Guddu Power accounting for Rs35.240 billion and Nandipur Power for Rs21.303 billion. Independent power producers owe another Rs36.969 billion, led by Liberty Power at Rs20.840 billion.

Among the IPPs, KAPCO's dues stand at Rs5.118 billion and Saif Power's at Rs2.341 billion. SNGPL has cautioned that ongoing non-payment might lead it to invoke its contractual powers to collect the amounts owed. Its general manager for recovery said inordinate delays had badly affected the company's liquidity position, leaving it unable to meet commitments including payments to upstream suppliers.