Category: Shortcode

Gas Utilities Propose Up to 54% Tariff Hike to Cover Revenue Shortfall

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Gas-IMF

ISLAMABAD: The two major gas utilities in Pakistan—Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL)—have requested an increase of up to 54% in prescribed gas prices to address revenue shortfalls for the current fiscal year (FY25). The Oil and Gas Regulatory Authority (OGRA) will conduct public hearings for these proposals, with SNGPL’s hearing set for November 5 and SSGCL’s for November 8. SNGPL has applied for a 3.66% hike, translating to an additional Rs64.16 per mmBtu, while SSGCL is seeking a significant 53.5% increase, or…

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Households Face Major Gas Price Hike Amid Rising RLNG Costs

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Gas-Price

ISLAMABAD: Domestic gas consumers in Pakistan are set to face a significant financial impact as Sui Northern Gas Pipeline Limited (SNGPL) seeks an increase in gas prices by Rs64.16 per MMBTU for FY2024-25. In its recent petition to the Oil and Gas Regulatory Authority (OGRA), SNGPL requested a revised prescribed tariff of Rs1,711.73 per MMBTU, citing an estimated revenue shortfall of Rs20.58 billion, including Rs489 million allocated to the LPG Air Mix project. A substantial portion of this price hike—totaling Rs163.06 billion—comes from the cost of diverted imported RLNG, following…

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Saudi Arabia to Finalize $1.2 Billion Oil Facility for Pakistan by December

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Pak-Saudi

ISLAMABAD: Following confirmation to the IMF regarding an oil facility, Saudi Arabia is set to send a high-level delegation to Pakistan in December 2024 to finalize details for a $1.2 billion Saudi Oil Facility (SOF). This facility will support Pakistan’s bid for a $7 billion Extended Fund Facility (EFF) from the IMF, with Pakistan also requesting an additional $1 billion for climate finance. According to top officials, Pakistan may propose a one-year deferred payment plan, involving $100 million monthly disbursements, with repayments starting in the following calendar year. The SOF…

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CPPA-G Urges Pakistan Railways to Boost Coal Freight for Sahiwal Power Plant

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Sahiwal-Power

ISLAMABAD: The Central Power Purchasing Agency-Guaranteed (CPPA-G) has requested Pakistan Railways to increase the number of freight trains to secure a steady supply of imported coal for the 1,320 MW Sahiwal coal-fired power plant, sources reported. CPPA-G referenced previous communications highlighting a critical coal shortage reported by Huaneng Shandong Ruyi (HSR), the plant’s operator. Transportation delays by Pakistan Railways have affected the coal supply chain, risking potential operational disruptions. Under Section 5.14 of the Power Purchase Agreement (PPA) with HSR, signed on July 11, 2015, the company must maintain a…

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SIFC Seeks Power Division’s 10 Investment-Ready Projects for Saudi Partnership

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Power-generation

ISLAMABAD: The Special Investment Facilitation Council (SIFC) has requested that the Power Division present a list of ten investible projects by October 31, 2024, for potential investment from Saudi Arabia, following the recent visit of Saudi Investment Minister Khalid bin Abdulaziz Al-Falih and a delegation of over 30 Saudi companies. Amid economic challenges like a high import bill and foreign exchange shortages, SIFC underscores the importance of establishing an investment-ready project pipeline to boost industrial growth, job creation, and exports. Prime Minister Shehbaz Sharif has stressed the need for foreign…

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