ISLAMABAD: Sui Northern Gas Pipelines Limited (SNGPL) has issued an urgent appeal to the Petroleum Division, highlighting severe financial challenges due to underpayment by the power sector for RLNG supplies. Sources reveal that SNGPL has approached the Directorate General of Gas, outlining difficulties in meeting its payment obligations for RLNG and indigenous gas supplies.
Since the gas price revision in November 2023, SNGPL has disbursed Rs1,093 billion to Pakistan State Oil (PSO). However, in September 2024, SNGPL expects a payment shortfall of Rs22 billion due to reduced demand from the power sector and pending cost equalization with SSGC. The power sector’s total outstanding dues have now surged to Rs176 billion.
SNGPL has proposed several measures, including expediting cost equalization with SSGC and securing additional payments from the Power Division to avoid disruptions in the RLNG supply chain.
Story by Mushtaq Ghumman
