SNGPL owes Rs23.1bn to PSO
WASIM IQBAL
ISLAMABAD: Sui Northern Gas Pipelines (SNGPL) owes Rs 23.1 billion to Pakistan State Oil (PSO) on account of purchase of re-gasified liquefied natural gas (RLNG) LNG, sources revealed to this correspondent.
SNGPL purchased RLNG worth Rs424.85 billion from PSO from 2015 till April 1, 2018 and paid Rs401.75 billion, leaving an outstanding balance of Rs23.1 billion.
SNGPL is, in turn, facing challenges in receiving payment from its RLNG customers with receivables of Rs23.1 billion against IPPs (independent power producers), GPPs (government power projects), fertilizer manufacturers, CNG (compressed natural gas) stations, industries and other RLNG consumers due to tariff disputes in different courts. Under LNG supply agreement of 55mmcfd to Rousch Power and 30 mmcfd to Fauji Kabirwala Power Company Limited on as and when available basis the two IPPs owe approximately Rs 10 billion to SNGPL, sources said.
On April 9, 2018, after the Finance Ministry released Rs22 billion to PSO, the receivables of PSO came down from Rs 335 billion to Rs313 billion, which includes Rs23.1 billion on account of LNG imports.
Non-payment by SNGPL against LNG imports has, in turn, put further liquidity pressure on PSO which already had receivables of Rs264.9 billion against the power sector, Rs 25.6 billion against PIA and price difference claims pending against government departments as of April 9, 2018.
The receivable payable position also reveals that public sector electric power generation companies (Gencos) owe Rs148 billion to PSO, Hub Power Company (Hubco) Rs73 billion and Kot Addu Power Company (Kapco) Rs39 billion. And under the head preferential differential of Lower Sulpher Furnace Oil and High Sulpher Furnace Oil, receivables of PSO stand at Rs 4.9 billion. Earlier, PIA was the second biggest defaulter after power sector, but now SNGPL has surpassed PIA and become the second largest defaulter of PSO with Rs23.1 billion outstanding dues, sources said. The PSO payables to national refineries have increased to Rs15.1 billion which includes Rs7.2 billion to Pak-Arab Refinery Company, Rs2.4 billion to Pakistan Refinery Limited, Rs0.7 billion to National Refinery Limited, Rs1.8 billion to Attock Refinery Limited, Rs2.2 billion to Byco and Rs0.8 billion to Enar.
