Purchase of RLNG: SNGPL owes Rs 23.1 billion to PSO

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 Rs 424.85 billion from PSO from 2015 till April 1, 2018 and paid Rs 401.75 billion, leaving an outstanding balance of Rs 23.1 billion.
SNGPL is, in turn, facing challenges in receiving payment from its RLNG customers with receivables of Rs 23.1 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 Rs 22 billion to PSO, the receivables of PSO came down from Rs 335 billion to Rs 313 billion, which includes Rs 23.1 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 Rs 264.9 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 Rs 148 billion to PSO, Hub Power Company (Hubco) Rs 73 billion and Kot Addu Power Company (Kapco) Rs 39 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 Rs 23.1 billion outstanding dues, sources said. The PSO payables to national refineries have increased to Rs 15.1 billion which includes Rs 7.2 billion to Pak-Arab Refinery Company, Rs 2.4 billion to Pakistan Refinery Limited, Rs 0.7 billion to National Refinery Limited, Rs 1.8 billion to Attock Refinery Limited, Rs 2.2 billion to Byco and Rs 0.8 billion to Enar.