ISLAMABAD: In a late-night development, the Oil and Gas Regulatory Authority (Ogra) on Tuesday allowed an increase of 14 per cent or Rs87 per unit, and 7pc or Rs55 per unit on the average prescribed price of natural gas for Sui Northern Gas Pipeline Ltd (SNGPL) and Sui Southern Gas Company Ltd (SSGCL) to meet their revenue shortfalls during the current fiscal year (FY22).
The regulatory body, under Section 8(1) of Ogra Ordinance, 2002, vide its decisions dated Aug 17, 2021, has determined the Estimated Revenue Requirement of SNGPL & SSGCL for FY22.
Both determinations have been sent to the federal government for receipt of category-wise natural gas sale price advice, as required under Section 8(3) of the Ogra Ordinance.
The summary of revenue requirement determination, as claimed by SNGPL vis-à-vis that allowed by Ogra for FY 2021-22, is as follows: The financial impact of SNGPL’s previous years’ shortfall of Rs254,108 million i.e. Rs669.75 per mmBtu has been referred to the federal government for an appropriate policy decision and is, therefore, not made part of the instant determination.
A comparison between SSGCL’s demand and that allowed for FY22 is as follows: The Ogra has reduced the gas companies’ demand for increase in gas prices for FY22. Moreover, taking cognisance of high pendency of gas connections in gas utilities’ system, besides many incomplete development projects, the authority has directed Sui companies to immediately proceed for installation of all ongoing or incomplete projects, as previously authorised.
In respect of SSGCL, the company has specifically been directed to immediately proceed effectively and rigorously against significant number of gas pilferers/non-consumers, located in its franchise area so as to bring down its ever-increasing UFG.
Through the above determination, the federal government has been requested for advice on category-wise sale prices. Any revision, as advised by the federal government, shall be accordingly notified by Ogra. Till such time the existing category-wise natural gas sale prices shall continue to prevail.
Published in Dawn, August 18th, 2021