Sui Northern Gas Pipeline Limited (SNGPL) has served gas disconnection notice to TNB Liberty Power Limited (TNB LPL), a 235 MW (gross) Combined Cycle Power Plant at Daharki, Sindh due to non-payment of gas bills, well informed sources in PPIB told Business Recorder. SNGPL, sources said, through its letters dated June and July 2018 served final disconnection notices to TNB LPL on the basis of non-payment of outstanding dues (i.e. Rs 1.682 billion) to SNGPL.
SNGPL stated that in case of non-payment of outstanding dues existing security cash will be adjusted and gas supply to TNB LPL plant will stand disconnected in case of non-payment.
According to sources, in response to disconnection notices, TNB LPL, in its letter of July 20, 2018 informed SNGPL that TNB LPL has not received any payments from WAPDA/CPPA-G under the head of Late Payment Surcharge (LPS), therefore it is unable to immediately offload outstanding dues of LPS to SNGPL.
TNB LPL, sources said, had committed to pay the outstanding LPS to SNGPL as and when it receives the corresponding payments from WAPDA/ CPPA-G. In response to this commitment, SNGPL in a letter of July 20, 2018 advised TNB LPL to provide firm schedule of payment by July 23, 2018. However, the power company did not convey any such commitment to the gas company which is already facing financial woes due to non-payment of RLNG outstanding dues.
TNB LPL through its letter of July 23, 2018 informed PPIB that in the absence of commitment from WAPDA/CPPA-G regarding payment schedule it is extremely difficult for TNB LPL to provide any firm payment schedule.
TNB LPL on July 16, 2018 also served 30 day notice to CPPA-G under section 1.5 of the guarantee of December 13, 2001 read with article 4.3(b) of the Power Purchase Agreement (PPA) for overdue amount of Rs 8.165 billion.
The PPIB has requested Ministry of Energy (Power Division) to direct concerned quarters to release TNB LPL's undisputed payments at the earliest to avoid gas disconnection by SNGPL and TNB LPL's call on GoP guarantee as per section 1.5.1 of the implementation agreement