ISLAMABAD: Sui Northern Gas Pipelines Limited (SNGPL) has reported outstanding receivables of Rs169.27 billion from the power sector, warning that mounting arrears have triggered a severe liquidity crisis and undermined its ability to meet payment commitments to upstream gas suppliers.
Thank you for reading this post, don't forget to subscribe!In a letter addressed to the Chief Executive Officer of the Central Power Purchasing Agency-Guarantee (CPPA-G), SNGPL has called for urgent settlement of overdue payments, cautioning that continued financial constraints could expose Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL) to potential international payment defaults against imported re-gasified liquefied natural gas (RLNG) supplies.
According to the company, total outstanding dues against WAPDA power plants, independent power producers (IPPs) and gas-based power plants (GPPs) have reached Rs169,270 million. These liabilities include gas charges, RLNG tariff actualisation, take-or-pay obligations, Gas Infrastructure Development Cess (GIDC) and late payment surcharges (LPS).
The consumer-wise breakdown shows that gas-based power plants account for the largest share of outstanding payments at Rs67.268 billion, followed by WAPDA power plants at Rs63.548 billion and IPPs at Rs38.454 billion.
Among WAPDA power plants, Guddu Power has the highest outstanding liability of Rs37.959 billion, followed by Nandipur with Rs21.395 billion. Other outstanding amounts include Rs1.491 billion against TPS Muzaffargarh, Rs2.346 billion against GTPS Faisalabad, Rs214 million against GTPS Shahdara, Rs86 million against SPS Faisalabad and Rs57 million against NGPS Multan.
In the IPP category, Liberty Power accounts for the largest outstanding amount at Rs22.642 billion, followed by KAPCO at Rs5.085 billion, Orient Power at Rs3.242 billion, Saif Power at Rs2.353 billion and Sapphire Power at Rs2.339 billion.
Other outstanding liabilities include Rs1.370 billion against FKPCL, Rs1.316 billion against Halmore Power, Rs88 million against Davis Energen and Rs59 million against Engro Energy.
Meanwhile, dues against gas-based power plants include Rs30.062 billion against QATPL, Rs22.701 billion against NPPMC (Baloki), Rs12.476 billion against NPPMC (HBS) and Rs2.029 billion against PTPL.
SNGPL has stated that the accumulation of these liabilities has created serious liquidity challenges, affecting its financial sustainability and ability to fulfil payment commitments across the gas supply chain.
The company has also approached the Director General Gas at the Petroleum Division, seeking intervention to ensure the early release of funds and enable power sector consumers to clear their outstanding liabilities.
In its communication, SNGPL attributed the growing arrears to insufficient fund releases by CPPA-G to the power sector or non-payment by individual power plants. It has requested the Petroleum Division to take up the issue with the Power Division for an early settlement.
The company further highlighted that Rs277 million remains outstanding against disconnected WAPDA rented power units at Bhikki and Sharaqpur, while another Rs88 million is payable by disconnected IPP Davis Energen.
In a separate letter dated October 8, 2026, addressed to the Chief Executive Officer of Northern Power Generation Company Limited (NPGCL), TPS Muzaffargarh, SNGPL demanded payment of Rs25.006 billion outstanding against various power sector consumers, including Nandipur, TPS Muzaffargarh, GTPS Faisalabad, GTPS Shahdara, SPS Faisalabad and NGPS Multan.
Warning of further financial deterioration, SNGPL said prolonged payment delays had severely affected its liquidity position and constrained its capacity to meet obligations, particularly payments to upstream gas suppliers.
The company has urged power sector entities to immediately clear overdue amounts, warning that it may exercise its contractual rights to recover outstanding payments in case of continued default.
The correspondence highlights growing financial stress across Pakistan’s gas supply chain, where mounting power sector arrears are threatening the ability of gas utilities to maintain financial stability and fulfil their obligations to suppliers.
SNGPL has emphasised the need for priority intervention by the relevant ministries and CPPA-G to prevent further deterioration and avoid potential disruptions in the payment chain for imported RLNG supplies.
Story by Mushtaq Ghumman
