Pakistan Seeks Payment Plan from Power Division Amid Gas Supply Disruptions

The Petroleum Division of Pakistan's government has asked the Power Division to submit a payment plan by June 30, 2026, to address the mounting outstanding dues owed to Sui Northern Gas Pipelines Limited (SNGPL) for indigenous gas and imported RLNG supplies.

The issue has become more pressing following disruptions in LNG supplies and the diversion of indigenous gas to RLNG-based power plants during April, May, and June 2026. The Power Division argued that charging RLNG-based power plants the full notified RLNG price for indigenous gas supplied during this period would require upward fuel cost adjustments of approximately Rs0.50 to Rs1 per kWh.

The government decided that RLNG supplied to power plants from April 2026 onward would be charged at the OGRA-notified price based on the actual cost of imported LNG, and a ring-fenced payment mechanism through an escrow account was introduced to prevent further accumulation of power-sector receivables.