The Oil and Gas Regulatory Authority (OGRA) has increased Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGC) users’ average prescribed gas prices by up to 16.37 percent.
The regulator has increased the prescribed gas prices by 16.37 percent or Rs. 94/mmBtu for SNGPL customers and 6.35 percent or Rs. 50/mmBtu for SSGC customers in two separate decisions on petitions regarding the review of its estimated revenue requirement for fiscal year 2021-22, filed by the state-owned gas companies SNGPL and SSGC.
The Oil and Gas Regulatory Authority (OGRA) has sent the federal government two independent determinations about the prescribed pricing for final determination of the sale price.
SNGPL had filed a review appeal against OGRA’s August 2021 decision on the estimated revenue requirement (ERR) of Rs. 236.749 billion or Rs. 576.32/mmBtu for FY 2021-22, asking an ERR of Rs. 308.478 billion and a Rs. 269.03/mmBtu increase in the average recommended gas prices.
SNGPL had asked for the average prescribed price to be set at Rs. 845.35 per mmBtu. OGRA, on the other hand, has set the company’s ERR for FY 2021-22 at Rs. 227.485 billion, based on an average prescribed price of Rs. 670.37/mmBtu.
The company filed a review appeal against the regulator’s decision of Rs. 779.88/mmBtu average prescribed rates for SSGC, claiming a revenue shortfall of Rs. 18.4 billion for FY 2021-22 and requesting an increase in its average recommended price of Rs. 58.42/mmBtu effective July 1, 2021.
The cost of Regasified-Liquefied Natural Gas (RLNG) services was assessed by the petitioner at Rs. 30.48/mmBtu at the time. SSGC had an ERR of Rs. 269.086/mmBtu, or a Rs. 838.30/MMBtu average recommended price. OGRA, on the other hand, calculated the ERR to be Rs. 266.307 billion, or Rs. 829.48 per mmBtu.
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