SNGPL Dues Hit Rs169bn as Power Sector Defaults Loom
Sui Northern Gas Pipelines Limited has warned that unpaid electricity sector bills totalling Rs169.27 billion are putting its finances under severe strain and threatening payments to its own gas suppliers. The SNGPL dues have built up across WAPDA plants, independent power producers and gas-based power stations. The gas utility has asked for urgent recovery of the amount, warning that the backlog could disrupt the chain of payments for imported gas.
In a letter to the chief executive of the Central Power Purchasing Agency-Guarantee, SNGPL’s chief executive sought immediate settlement of the outstanding amount. The company warned that its worsening liquidity position was making it increasingly difficult to meet financial obligations to upstream suppliers.
SNGPL dues threaten imported gas payments
The outstanding liabilities include unpaid gas charges, adjustments to regasified liquefied natural gas tariffs, take-or-pay obligations, Gas Infrastructure Development Cess and late payment surcharges. Gas-based power plants account for the largest share at Rs67.268 billion, followed by WAPDA power plants at Rs63.548 billion and independent power producers at Rs38.454 billion.
The company says the growing backlog could disrupt payments for imported regasified liquefied natural gas, known as RLNG, potentially exposing Pakistan State Oil and Pakistan LNG Limited to international payment defaults. SNGPL has approached the director general gas at the Petroleum Division separately, asking for government intervention to secure the early release of funds.
SNGPL has attributed the growing arrears to insufficient fund releases by CPPA-G to the power sector, or to non-payment by individual power plants. It has asked the Petroleum Division, the Power Division and CPPA-G for priority intervention to prevent further deterioration.
Who owes what
Within the WAPDA power generation fleet, Guddu Power owes the most at Rs37.959 billion, followed by Nandipur at Rs21.395 billion. Other unpaid amounts include Rs2.346 billion against GTPS Faisalabad, Rs1.491 billion against TPS Muzaffargarh, Rs214 million against GTPS Shahdara, Rs86 million against SPS Faisalabad and Rs57 million against NGPS Multan.
Among independent power producers, Liberty Power accounts for the largest outstanding amount at Rs22.642 billion. Other major defaulters include KAPCO with Rs5.085 billion, Orient Power with Rs3.242 billion, Saif Power with Rs2.353 billion, Sapphire Power with Rs2.339 billion, FKPCL with Rs1.370 billion and Halmore Power with Rs1.316 billion. Smaller amounts include Rs88 million against Davis Energen and Rs59 million against Engro Energy.
The arrears against gas-based power plants include Rs30.062 billion against QATPL, Rs22.701 billion against NPPMC’s Baloki plant, Rs12.476 billion against NPPMC’s HBS plant and Rs2.029 billion against PTPL. The utility also reported Rs277 million in unpaid dues against disconnected WAPDA rented power units at Bhikki and Sharaqpur.
In a separate letter dated October 8, addressed to the chief executive of Northern Power Generation Company Limited at TPS Muzaffargarh, SNGPL demanded payment of Rs25.006 billion owed by various power sector consumers, including Nandipur, TPS Muzaffargarh, GTPS Faisalabad, GTPS Shahdara, SPS Faisalabad and NGPS Multan.
Why the warning matters
The warning exposes the circular debt chain that links the gas and power sectors. Power plants burn gas to generate electricity, but when they do not pay for the gas, SNGPL cannot pay its own suppliers, and the strain travels up the chain to the companies that import LNG for Pakistan.
Pakistan’s energy import bill has already reached Rs3.5 trillion, and PSO has been working under an IMF-backed plan to clear circular debt. PSO’s profits doubled in the first quarter of the current fiscal year, yet the underlying payment chain remains fragile, as the SNGPL letter shows.
The timing adds to the pressure. Winter raises gas demand across the country, and Pakistan has already lined up winter LNG cargoes. Sui Southern Gas has published its own winter gas schedule for Sindh and Balochistan. If the payment chain breaks, the gas that heats homes and powers industry in the cold months is the first casualty.
What happens next
SNGPL has asked the Petroleum Division to coordinate with the Power Division and CPPA-G to resolve the issue and ensure immediate settlement of the outstanding amounts. The company has warned that prolonged delays have already damaged its liquidity and financial sustainability. Business Recorder reported the utility’s warning.
Frequently asked questions
How much does the power sector owe SNGPL?
The power sector owes SNGPL Rs169.27 billion in unpaid bills, including gas charges, RLNG tariff adjustments, take-or-pay obligations, Gas Infrastructure Development Cess and late payment surcharges.
Which plants owe the most?
Gas-based power plants owe Rs67.268 billion, WAPDA plants owe Rs63.548 billion and independent power producers owe Rs38.454 billion. Guddu Power alone owes Rs37.959 billion.
Why does this threaten gas supplies?
SNGPL says the arrears have created a severe liquidity crisis, which could disrupt payments for imported RLNG and expose PSO and Pakistan LNG to international payment defaults.
What has SNGPL asked the government to do?
It has written to CPPA-G seeking urgent recovery of the dues, and asked the Petroleum Division to intervene for the early release of funds.
Has SNGPL demanded payment from individual plants before?
Yes. In a letter dated October 8, 2026, it demanded Rs25.006 billion from power consumers including Nandipur, TPS Muzaffargarh and GTPS Faisalabad.
