SNGPL faces serious liquidity crunch amid delay in release of Rs174bn
Sui Northern Gas Pipelines Limited (SNGPL) reports a liquidity strain as the Central Power Purchasing Agency-Guaranteed (CPPA‑G) has delayed disbursing roughly Rs174 billion owed by power sector entities.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Negative · Do not buy
Oil & Gas sector faces liquidity pressure; avoid buying ISL until cash flow improves.
Sectors & Direction
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Desk call: Do not buy · Negatively affected
- Oil & GasNegatively affected
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Companies Mentioned
- ISL· Negatively affected · Do not buy
Mentions in This Briefing
Sectors: Oil & Gas — Negative · Do not buy. PSX tickers: ISL. Oil & Gas sector faces liquidity pressure; avoid buying ISL until cash flow improves.
Full Story
Open on Business Recorder## Overview
Sui Northern Gas Pipelines Limited (SNGPL) disclosed that it is confronting a severe liquidity crunch because of outstanding receivables amounting to approximately Rs173.7 billion from the power sector. The delay is primarily attributed to the Central Power Purchasing Agency‑Guaranteed (CPPA‑G) not releasing funds on time.
## Breakdown of Outstanding Dues
- Total receivables from power sector: Rs173.654 billion - Government‑owned power plants: Rs60.989 billion (including Rs21.497 billion undisputed gas charges, Rs4.465 billion RLNG tariff charges, and Rs34.173 billion late‑payment surcharge) - Key government plants with large balances: Guddu Power (Rs35.240 billion), Nandipur Power (Rs21.303 billion), Bhikki rented plant (Rs116 million), Sharaqpur rented plant (Rs161 million) - Independent Power Producers (IPPs): Rs36.969 billion (notable IPPs include KAPCO – Rs5.118 billion, Liberty Power – Rs20.840 billion, Orient Power – Rs3.189 billion) - Other major government plants: QATPL (Rs32.228 billion), Balloki Power (Rs23.737 billion), NPPMCL’s HBS (Rs18.379 billion), PTPL (Rs1.352 billion)
## Operational Impact
SNGPL’s General Manager (Recovery) warned that the prolonged delay hampers the company’s ability to meet its own obligations, especially payments to upstream gas suppliers. The firm has appealed to the Director General (Gas), Petroleum Division, to intervene with the Power Division for an expedited release of the dues.
## Potential Consequences
If the outstanding amounts remain unpaid, SNGPL may invoke its contractual rights to recover dues, which could affect gas supply contracts and downstream operations.
## Next Steps
SNGPL is seeking immediate clearance of overdue payments from WAPDA‑owned plants, IPPs, and other power entities to restore its cash flow and honor supplier commitments.