SNGPL Urges Petroleum Division to Clear Outstanding Dues for RLNG Supply


Sui Northern Gas Pipelines Limited (SNGPL) has issued an urgent appeal to the Petroleum Division (PD) for the clearance of its outstanding dues, particularly from the power sector and Sui Southern Gas Company Limited (SSGCL), crucial for ensuring the continuous supply of Liquefied Natural Gas (LNG). The request, outlined in a letter dated March 27, 2024, highlights the financial strain SNGPL is facing due to pending recoveries from the power sector, leading to difficulties in meeting payment obligations to Pakistan State Oil (PSO).

The letter reveals that SNGPL has paid Rs57.3 billion to PSO out of the Rs106 billion RLNG supply cost for March 2024, leaving a substantial balance of Rs48.7 billion. This shortfall is attributed to delays in recovery from the power sector and Rs7 billion from SSGCL against RLNG withheld invoices.

SNGPL emphasizes the importance of all stakeholders fulfilling their commitments to sustain the RLNG supply chain and avoid defaults. Raheel Farooq, SNGPL’s General Manager Accounts, has urged the Ministry of Energy (Petroleum Division) to intervene and expedite the realization of dues from the power sector and SSGCL to prevent disruptions in RLNG supply.

Meanwhile, PSO has voiced concerns about the financial strain from the LNG business, noting that without it, the company’s equity would have been significantly higher. These developments underscore the critical need for timely payment settlements to ensure the stability of the RLNG supply chain and financial health of involved parties.

Story by Mushtaq Ghumman

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