SSGC defaults Rs 59b payment
Aftab Ahmed
Sui Southern Gas Company (SSGC) has refused to pay Rs 59 billion to Sui Northern Gas Pipeline Limited (SNGPL) despite it collects from the customers on account of retaining RLNG supplies.
SNGPL in a letter sent to Pakistan LNG Limited (PLL) over default of late payment surcharge on account of RLNG supply, gas utility said that in respect of SSGC, total recoverable has increased to an alarming level of Rs. 59 billion and SSGC has collected this amount from its consumers but not pay it to SNGPL.
SNGPL further expressed commitment to make timely payments to M/s PLL and other creditors and would continue to do whatever efforts are required to ensure continuity of the supply chain of RLNG.
https://newztodays.com/pd-initiates-recovery-of-billions-under-gidc-from-defaulting-sectors/
It pointed out that major reasons for the accumulation of payable balance towards PLL and PSO were the diversion of RLNG towards the domestic sector in the winter season and non-payment by SSGC against the RLNG SSGC retained.
With respect to the diversion of RLNG towards the domestic sector, we wish to apprise that the Federal Govt, SNGPL said adding that it has issued policy guidelines to OGRA for recovery of the stuck amount of Rs. 102 billion on this account through RLNG price adjustment.
In a recent meeting of our management with that of SSGC, they have promised to release the net amount of about Rs. 18 billion which has accumulated from Jun-20 to Dec-20 while for the release of the balance amount parties have agreed to resolve the matter.
Out of the aforementioned amount of Rs. 18 billion, SSGC paid Rs. 7 billion as of today and the same was disbursed to PLL and PSO (Rs. 3.075 billion and 3.925 billion respectively) immediately upon receipt. Moreover, it will pay the balance amount as soon as it receives it.
Nevertheless, SNGPL is trying its best level efforts to pay its creditors and since January 25, 2021, it paid a sum of Rs. 9.380 billion to M/s PLL as against Rs. 6.5 billion.
We look forward to an early settlement and payment by SSGC, formulation of recovery mechanism by OGRA regarding diverted RLNG, and release of subsidy without any further delay for onward payment to RLNG suppliers to avoid any adverse situation of international default, SNGPL said.
