around.pk
Tuesday, 10 November 2026
⛅ Karachi 24°⛅ Lahore 22°⛅ Islamabad 19°
Business

SNGPL Warns Rs. 169 Billion Power Sector Debt Threatens Gas Payment Chain

Sui Northern Gas Pipelines Limited says unpaid power sector dues of Rs. 169.27 billion are straining its finances and could trigger defaults on imported RLNG payments to suppliers.

around.pk·9h ago

Sui Northern Gas Pipelines Limited (SNGPL) has warned that unpaid power sector bills totaling Rs. 169.27 billion are placing severe strain on its finances and could disrupt payments to its own gas suppliers, according to a report. In a letter to the Central Power Purchasing Agency Guarantee (CPPA-G), the company's chief executive sought immediate recovery of the outstanding amount, cautioning that its worsening liquidity position is making it harder to meet obligations to upstream suppliers.

The company said the growing backlog could break the payment chain for imported regasified liquefied natural gas (RLNG), potentially exposing Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL) to international payment defaults. The outstanding liabilities cover unpaid gas charges, RLNG tariff adjustments, take-or-pay obligations, the Gas Infrastructure Development Cess (GIDC) and late payment surcharges.

Gas-based power plants account for Rs. 67.268 billion of the total, while WAPDA power plants owe Rs. 63.548 billion and independent power producers (IPPs) have accumulated a further Rs. 38.454 billion. Within the WAPDA fleet, Guddu Power carries the largest liability at Rs. 37.959 billion, followed by Nandipur at Rs. 21.395 billion, with smaller amounts owed by GTPS Faisalabad, TPS Muzaffargarh, GTPS Shahdara, SPS Faisalabad and NGPS Multan.

Among IPPs, Liberty Power accounts for the biggest share at Rs. 22.642 billion, followed by KAPCO at Rs. 5.085 billion, Orient Power at Rs. 3.242 billion, Saif Power at Rs. 2.353 billion, Sapphire Power at Rs. 2.339 billion, FKPCL at Rs. 1.370 billion and Halmore Power at Rs. 1.316 billion. Arrears against gas-based plants include Rs. 30.062 billion for QATPL, Rs. 22.701 billion for NPPMC's Baloki plant, Rs. 12.476 billion for NPPMC's HBS plant and Rs. 2.029 billion for PTPL.

SNGPL attributed the arrears to either insufficient fund releases by CPPA-G to the power sector or non-payment by individual plants. In a separate communication to the Director General Gas at the Petroleum Division, the company requested intervention to secure early release of funds and help settle the outstanding liabilities.

The utility also reported Rs. 277 million in unpaid dues against disconnected WAPDA rented units at Bhikki and Sharaqpur, and asked the Petroleum Division to take the matter up with the Power Division. In a letter dated October 8, 2026, to the chief executive of Northern Power Generation Company Limited (NPGCL) at TPS Muzaffargarh, SNGPL demanded payment of Rs. 25.006 billion owed by various power sector consumers. The company warned it may exercise its contractual recovery rights if the overdue amounts are not cleared.

The story so far Pakistan State Oil

  1. PM Shehbaz Declares End of LPG Mafia as Cabinet Approves New Import Policy
See the full timeline →
Debt & loansPetroleum DivisionGasPakistan State OilSui Northern Gas Pipelines LimitedCentral Power Purchasing Agency GuaranteeLiberty PowerPakistan LNG Limited

Continue the story

View all →

Read more