ISLAMABAD: Mari Petroleum Company Limited (MPCL) has threatened to suspend gas supply to power sector from November 1, 2022, if Central Power Generation Company Limited (CPGCL) (Genco-II) TPS Guddu fails to pay outstanding dues, well informed sources told Business Recorder.

In a letter to Chief Executive Officer (CEO), CPPA-G, Rehan Akhtar, Director (Business Development & Commercial), Hassan Mehmood, has cited the reference of his October 11, 2022 letter where the company had requested CPGCL to promptly pay/disburse outstanding gas sales invoices against written assurances.

MPCL has referred the letter of CPGCL of June 25, 2022 whereby the latter communicated that it shall obtain its corporate approvals after receiving the initialed versions of the 1st supplemental to term sheet.

According to MPCL, the initialled version of term sheet was duly shared by MPCL on July 21, 2022, however, as of October 25, 2022, the company has received no notification regarding the status of CPGCL’s corporate approvals.

Gas leakage: MPCL threatens to suspend supply to TPS Guddu

In this regard, MPCL has again requested that all outstanding receivables of Rs 76.7 billion disbursed/ paid to MPCL by October 30, 2022, of which the amount of gas sale of Rs 18 billion, Rs 18.5 billion as Gas Development Surcharge (GDS), Rs 18.7 billion take or pay and Rs 21.5 billion Late Payment Surcharge (LPS) up to August 31, 2022, should be paid immediately.

The MPCL maintains that CPGCL provides it with the executed copy of supplemental to term sheet already initialled by parties and which are shared by the former in its letter of July 30, 2022.

The MPCL has cautioned that CPGCL’s failure to comply with both its demands shall compel it to suspend gas supply with effect from October 31, 2022 in accordance with Article 10 (c) of term sheet of June 20, 2017 (which remains in effect as an implied arrangement).

Copyright Business Recorder, 2022