OGRA endorses gas revenue estimates for FY 2025-26

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MG News | May 21, 2025 at 10:19 AM GMT+05:00

May 21, 2025 (MLN): The Oil and Gas Regulatory Authority (OGRA) has finalized the Estimated Revenue Requirements (ERR) for Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL) for the fiscal year 2025-26.

The determinations have been submitted to the Federal Government for advice on category-wise natural gas sale prices under Section 8(3) of the OGRA Ordinance.

Summary of revenue requirement determinations as claimed by SSGCL vis-a-vis allowed by OGRA for FY 2025-26 is as under:

Particulars Demanded by SSGCL Determined by OGRA
Sales Volume (BBTU) 213,546 213,546
Average Prescribed Prices for FY 2025-26 (Rs./MMBTU) 1,825.79 1,498.18
Impact for recovery of prior year shortfall (Rs./MMBTU) 2,335.63 160.38
Average Prescribed Price for FY 2025-26 after Prior Years’ Shortfall Recoupment (Rs./MMBTU) 4,161.41 1,658.56
Average Prescribed Price per RERR FY 2024-25 (Rs./MMBTU) 1,762.51 1,762.51
Increase / (Decrease) in Prescribed Price over RERR FY 2024-25 (Rs./MMBTU) 2,398.90 (103.95)

Summary of revenue requirement determinations as claimed by SNGPL vis-a-vis allowed by OGRA for FY 2025-26 is as under:

Particulars Demanded by SNGPL Determined by OGRA
Sales Volume - Indigenous Gas (BBTU) 189,405 202,655
Sales Volume - RLNG (BBTU) 92,594 79,344
Sales Volume Total (BBTU) 281,999 281,999
Average Prescribed Prices for FY 2025-26 (Rs./MMBTU) 2,485.72 1,895.25
Average Prescribed Price per RERR FY 2024-25 (Rs./MMBTU) 1,778.35 1,778.35
Increase / (Decrease) in Prescribed Price over RERR FY 2024-25 (Rs./MMBTU) 707.37 116.9

The increase in prescribed price for SNGPL is mainly due to the impact of RLNG diversion made in pursuance of Federal Cabinet decision dated October 30, 2023, as per the notice issued by OGRA.

Considering the consistent exponential increase in RLNG diversion, which is impacting the gas price, the Authority has directed SNGPL to immediately take up the matter for review of gas supply management with the Federal Government.

This review should take into account the sectoral energy demand, international contractual obligations, and macro-economic factors.

Through the above said determination, Federal Government has been requested for advice on category-wise sale prices.

Any revision, as advised by Federal Government, shall be accordingly notified by OGRA. Till such time, the existing category-wise natural gas sale prices shall continue to prevail.

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