QUETTA April 25: Oil and Gas Regulatory Authority Chairman Munir Ahmed has said that the rights of all stakeholders of the Sui Southern Gas Company Limited will be protected in accordance with the law and in the best interest of public.
He was speaking at a public hearing organized by Ogra at a local hotel on a petition filed by the SSGCL for determining its estimated revenue requirements for fiscal 2004-05. The hearing was attended by interested parties and public representatives.
The chairman said Ogra was currently studying the prevalent formula of allowing return to gas companies, which was based on fixed assets. But, he said, this could be changed and recommendations in this regard would soon be submitted to the government.
"It is likely that next determination for fiscal 2005-06 would be at the revised basis," he expressed the hope. He informed that the authority would also conduct a public hearing at Karachi on April 26 to provide opportunity to Sindh people to express their point of view.
Led by its Managing Director Munawar Basir Ahmed, SSGCL team made a detailed presentation explaining salient features of the petition. He also responded to the questions raised by the authority and participants.
The managing director described revenue requirements of the company for year 2004-05 as Rs52,926 million and sought increase in the prescribed gas price by Rs18.81 per MMBTU with effect from July 1, 2004, in order to meet net shortfall of Rs6.024 million in the estimated revenue requirement.
He termed increase in the wellhead prices by Rs13.39 per MMBTU, operating cost by Rs3.19 per MMBTU and return on net operating fixed asset as per ADB loan covenants by Rs1.05 per MMBTU the main reasons for seeking increase in gas price.
Speaking on the occasion, Senator Malik Sarwar Khan Kakar raised the issue of relatively low purchase prices of gas from Balochistan, compared to other provinces and termed it gross injustice with the province.
