The Oil and Gas Regulatory Authority (OGRA) has increased the average prescribed gas prices by up to 16.37 percent for Sui Northern Gas Pipelines Limited (SNGPL) and Sui Sui Southern Gas Company Limited (SSGC) consumers.
In two separate decisions on the petitions regarding the review of its estimated revenue requirement for the fiscal year 2021-22, filed by the state-owned gas companies SNGPL and SSGC, the regulator has jacked up the prescribed gas prices by 16.37 percent or Rs. 94/mmBtu for the consumers of SNGPL and 6.35 percent or Rs. 50/mmBtu for the consumers of SSGC.
The Oil and Gas Regulatory Authority (OGRA) has forwarded two separate determinations regarding the prescribed prices to the federal government for the final determination of the sale price.
Against OGRA’s decision of August 2021, on the estimated revenue requirement (ERR) of Rs. 236.749 billion or Rs. 576.32/mmBtu, for FY 2021-22, SNGPL had filed a review petition demanding ERR of Rs. 308.478 billion with an increase of Rs. 269.03/mmBtu in the average prescribed price of gas. SNGPL had requested fixing the average prescribed price at Rs. 845.35/mmBtu. However, OGRA has now determined the ERR of the company for FY 2021-22 at Rs. 227.485 billion with an average prescribed price of Rs. 670.37/mmBtu.
Against the regulator’s decision of Rs. 779.88/mmBtu average prescribed prices for SSGC, the company had filed a review petition and had projected a shortfall in revenue requirement of Rs. 18.4 billion for FY 2021-22 and sought an increase in its average prescribed price by Rs. 58.42/mmBtu effective from July 1, 2021.
The petitioner at the time had also estimated the cost of Regasified-Liquefied Natural Gas (RLNG) services at Rs. 30.48/mmBtu. SSGC had ERR of Rs. 269.086/mmBtu or fixing average prescribe price at Rs. 838.30/MMBtu. However, OGRA determined the ERR at Rs. 266.307 billion or Rs. 829.48/mmBtu.