ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Wednesday said it was ending years old controversy and unnecessary prolonged litigation with the Sui gas companies, allowing them maximum of their claims against line losses viz-a-viz the unaccounted for gas (UFG) benchmark of 2.6 per cent.

The Sui Southern Gas Company (SSGC) had claimed a maximum of 2.44pc UFG losses and Ogra had already allowed 1.57pc in 2012-13 to 2016-17.

A press release issued by Ogra stated that 0.87pc was further allowed to the SSGC and now (variable allowance) capped to 2.44pc. The financial impact of this shall not be passed on to the consumers.

About the Sui Northern Gas Pipelines Ltd (SNGPL), Ogra said it had claimed 3.29pc for the same years against which it had been allowed 2.49pc and now only 0.11pc was being given to it.

However, Ogra limited their claims to a maximum of 2.6pc and the financial impact of which would be staggered in the next five financial years, which amounted to an increase of less than 50 paisa per million British thermal unit (mmBtu).

“This decision shall end the constant litigation on this account and lay to rest the continuous friction between the Sui companies and the regulator. The regulator will also be cognisant of the fact that it is also bound by certain laws and cannot take arbitrary decisions in the name of the best interest of the consumers, as had this decision not been taken, the equity of SSGC would have been wiped out and it would become simply a burden on the national exchequer.

It is up to the Sui companies to improve their performances and become sustainable in future as they cannot expect to be bailed out by the government always,” Ogra said.

The Sui gas companies needed to control their UFG losses, which were simply not possible without internal collusion, it added.

Fixed tariff for Balochistan

After suffering huge line losses in Balochistan, the SSGC is working on a proposal to introduce per month fixed gas tariff mechanism for domestic consumers to streamline its transmission issues.

The company’s line losses stood at 49.39pc in Balochistan, 13.88pc in Karachi and 13.8pc in the other cities of Sindh during the year 2017-18, according to official sources.

In a bid to bring down the increased UFG ratio, officials said that the company is in process of finalising a fixed gas tariff regime for Balochistan — the country’s largest province by area.

The package, which would be presented to the government, would require consumers to pay a fixed amount per month for the year regardless of the usage.

Under the UFG reduction strategy, the company is also establishing Control Gas Theft Operation Departments to deal with pilferers, making physical checking of all industrial customers for any theft, illegal load enhancement and malfunctioning of Electro Volume Corrector.

Establishment of independent police station at Karachi and special court in Sindh and Balochistan to deal with the gas theft cases is also part of the strategy, they added.

Sharing the last six-month gas supply data, they said the company provided 78 million cubic feet per day (mmcfd) gas in July, 86mmcfd in August, 90mmcfd in September, 114 mmcfd in October, 150mmcfd in November and 200mmcfd in December (as on Dec 21).

Despite severe problems and high consumption in peak winter, the sources said, the SSGC was managing adequate supplies to Mastung, Kalat and Ziarat where the temperature was below zero degree.

The sources said the government and gas utility companies were taking necessary steps to prevent gas losses.

They said the government had promulgated the Gas (Theft Control and Recovery) Ordinance, 2016 and involved law enforcement agencies to prevent gas theft.

Published in Dawn, December 27th, 2018