SNGPL plea against lowering of UFG benchmark allowed

Published July 20, 2021
The Ogra had reduced the UFG benchmark at 6.3 per cent for distribution and 0.3pc for transmission instead of allowing actual UFG as per past practice. — Wikimedia Commons/File
The Ogra had reduced the UFG benchmark at 6.3 per cent for distribution and 0.3pc for transmission instead of allowing actual UFG as per past practice. — Wikimedia Commons/File

LAHORE: The Lahore High Court on Monday allowed a petition of the Sui Northern Gas Pipelines Limited (SNGPL) against the Oil and Gas Regulatory Authority (Ogra) for reducing the UFG (unaccounted for gas) benchmark while determining the price of regasified liquefied natural gas (RLNG).

Justice Shahid Karim announced a short order.

A detailed verdict would be released later.

The petition by the SNGPL contended that the regulator, while determining the RLNG price since August 2020, deviated from the decision of the Economic Coordination Committee of the cabinet issued in this regard and started applying consolidated system gas UFG benchmark on RLNG consumers of distribution segment.

The Ogra had reduced the UFG benchmark at 6.3 per cent for distribution and 0.3pc for transmission instead of allowing actual UFG as per past practice in line with policy guidelines by the federation.

The petition said the price was applicable from August 20 onwards and resulted in undue financial burden on the company. The SNGPL asked the court to set aside the decision of the Ogra being unlawful and arbitrary.

Published in Dawn, July 20th, 2021

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