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ISLAMABAD Aug 17,2026: The Petroleum Division has asked the Power Division to prepare a payment plan for outstanding indigenous gas and RLNG dues owed to Sui Northern Gas Pipelines Limited (SNGPL).
The plan will include clear payment timelines. It is aimed at preventing further growth in gas-sector receivables.
SNGPL is facing growing financial pressure because of unpaid bills from power plants. The Petroleum Division had asked the Power Division to submit the payment plan by June 30, 2026, after reconciling the outstanding amounts.
The Economic Coordination Committee (ECC) has approved a payment mechanism proposed by the Petroleum Division. Under the mechanism, payments will be ring-fenced through an escrow account and settled through a weekly billing cycle.
For April, May and June 2026, indigenous gas supplied to RLNG-based power plants will be charged at Rs2,000 per MMBtu. The gas was supplied because imported RLNG was unavailable.
The Petroleum Division said the lower rate would help prevent a sharp increase in electricity prices. Charging the notified RLNG rate could have led power plants to seek a higher Fuel Charge Adjustment of Rs0.50 to Rs1 per unit.
However, the lower gas price could reduce SNGPL’s revenue. It could also increase pressure on the gas sector’s circular debt.
The gas sector’s principal circular debt stood at around Rs1.8 trillion in December 2025. Meanwhile, Pakistan State Oil (PSO) had around Rs301 billion in outstanding receivables from RLNG sales to SNGPL.
The Petroleum Division also highlighted the impact of diverting 48 MMCFD of indigenous gas from CNG consumers in Khyber Pakhtunkhwa to RLNG-based power plants during April-June 2026.
OGRA had set SNGPL’s prescribed average gas price at Rs1,853 per MMBtu for FY2025-26. The final price will be determined after the completion of the Final Revenue Requirements process.
The notified RLNG price was $12.4913 per MMBtu, or Rs3,498 per MMBtu, in March 2026. It increased to $15.6237 per MMBtu, or Rs4,375 per MMBtu, in May 2026.
The Petroleum Division also proposed charging RLNG supplied to power plants from April 2026 at the OGRA-notified rate. The price would be based on the actual cost of imported LNG.
PLL and PSO were asked to confirm full payment for FY2025-26 RLNG supplies, including spot purchases. The Power Division, including K-Electric, was required to clear any outstanding payments.
The Power Division, however, said payment arrangements should follow the respective Gas Supply Agreements.
It said the Central Power Purchasing Agency-Guaranteed (CPPA-G) would clear outstanding payments to power plants, subject to the availability of funds. The power plants would then pay SNGPL according to their agreements.
The ECC’s approval of the escrow-based weekly payment system is expected to improve payment discipline. It will also help prevent further accumulation of power-sector dues and reduce pressure on the gas sector’s circular debt.
