Non-payment of Rs 54 billion by power sector: SNGPL faces financial crunch, PAC told

Sui Northern Gas Pipelines Ltd (SNGPL) is facing financial crunch due to non-payment of Rs 54 billion by power sector, SNGPL Managing Director Arif Hameed disclosed to the National Assembly's Public Accounts Committee (PAC). The PAC, which met with Nadeem Afzal Gondal in the chair, reviewed appropriation accounts of the Ministry of Petroleum and Natural Resources, Ministry of Water and Power and Ministry of Postal Services.
Replying to member's questions regarding outstanding amount of SNGPL against private sector entities, the MD said they had disputes with 4 Independent Power Producers (IPPs) on payment. They had issued warning to them that they would cut gas supply in case they not clear their dues. Over all dues against power sector surged to Rs 54 billion.
With the increase in demand of domestic consumer, he said the losses were also increased. The ratio of domestic consumers reached 80 percent as compare to commercial consumers, excluding industrial consumers. He further argued that out of the total 10.2 percent SNGPL losses gas theft accounted for 4 percent.
Responding to criticism by the members of PAC for delaying the Prime Minister's directive to lay down gas pipeline in the constituencies of parliamentarians, the MD explained that the government issue directives on daily basis, but do not release funds for the development schemes. The Government's contribution is 30 percent, while 70 percent funds required for the scheme to be generated by the SNGPL," he explained.
In addition, the government has put in place 'Assignment Accounts' to draw funds. They could not draw funds unless release of matching grants, causing pendency in completion of development schemes in the constituencies of parliamentarians. Each year the company had a target to complete 6,000 kms long Sui gas pipeline. Completion of 13000 km pipeline by the company is pending. "If new directives are not issued, they need three years to complete the pending cases," he said.
The Managing Director further said the applications for new Sui gas connections reached 1.3 million, whereas the company has a capacity to install 250,000 connection, which improve to 400,000 connections recently. Arif Hammed put up a list of 42 defaulters who are default of over Rs 10 million. They include: Pak Fuel CNG Filling (Rs 11,225,075); M/s Al Saif (Rs 18,119,064); M/s Manzoor Sons (CNG) (Rs 269,938); M/s Abbas CNG (Rs 118,072); M/s Jurra Co CNG (Rs 8,284,172); M/s Supreme Gas Industries (Rs 8,680,887); Shaukat Metal Works (Rs 7,371,190); Malik CNG Filling Station (Rs 594,972); M/s Kunja Textile Mills (Rs 4,576,709); M/s Naeem Sons (Rs 68,418,231); M/s Raza CNG (Rs 17,826,958); M/s Raza CNG Station (Rs 26,524,428); Economic Fuel CNG Station (Rs 10,828,759); M/s Anam CNG (Rs 12,258,181); M/s Sadat CNG (Rs 2,799,393); General Manager Technical (Rs 5,094,741); M/s Mashallah CNG Station (Rs 11,095,192); M/s Jeddah CNG (Rs 8,208,008); M/s Imam Din Steel Mills (Rs 9,377,431); Ilyas Ice Factory Opp. (Rs 21,525,317); ME Army Tufail Road (Rs 10,800,624); M/s Malik JP's & Sons (Pvt) Ltd (Rs 11,319,110); M/s Mehmood Textile Mills (Rs 45,444,914); M/s Saif Textile Mills (Rs 13,692,129); M/s Cherat CNG (Rs 34,986,701); M/s Noor CNG Filling (Rs 13,819,477); M/s Khalil CNG Station (Rs 5,591,004); M/s Al Hamad CNG Station (Rs 4,858,482); M/s Motorway CNG Operator (Rs 4,083,092); M/s Irnus (Rs 15,402,550); Al Munir (Rs 8,829,279); M/s Malik CNG Station (Rs 42,895,448); M/s Mian Petroleum (Rs 24,344,393); M/s Al Rehman CNG Station (Rs 20,217,466); M/s Fast Fill Filling Station (CNG) (Rs 18,787,659); M/s Global Associates CNG (Rs 6,371,490); M/s Al Aziz Paper Mills Pvt Ltd (Rs 2,893,958); M/s Arain CNG Station (Rs 2,233,623); S-A Fibres Power (Rs 1,081,781); M/s Afaq Danyal Re Rolling Mills (Rs 11,252,676); M/s Global CNG (Rs 10,430,628) and M/s Al Rehman CNG Station (Rs 4,896,346).