December 27, 2018: The Sui Northern Gas Pipelines Limited (SNGPL) is waiting for funds to execute a project to lay gas transmission network in Karak district of Khyber Pakhtunkhwa province to prevent increased UFG (Unaccounted for Gas) losses there.
“We urgently need funds to complete the project in a period of two year, otherwise the company will face billions of rupees loss due to non-presence of legal network in the area,” official sources were reported saying.
The company had so far held three meetings with the provincial authorities on the issue, whereas services of law enforcement departments had also been hired for successful execution of the project, they said.
As per the revised formula, the UFG pertaining to year 2017-18 was 10.93 percent (49,882 mmcf – million cubic feet gas). The revised formula has mainly affected the UFG losses of Peshawar region, which has resulted in an increase in overall UFG of the company.
However, the UFG of company, excluding Peshawar and Mardan regions was 7.69 percent, they said. The figures with regard to the last fiscal year were yet to be finalized through determination of final revenue requirement by Oil and Gas Regulatory Authority (OGRA).
Meanwhile, OGRA has allowed the Sui gas companies maximums of their claims against line losses viz-a-viz the UFG benchmark of 2.6 percent.
The Sui Southern Gas Company (SSGC) had claimed a maximum of 2.44% UFG losses and OGRA had already allowed 1.57% in the FY 2012-13 to FY 2016-17. The authority further allowed 0.87% to the SSGC and now (variable allowance) capped to 2.44%. The financial impact of this shall not be passed on to the consumers.
About the SNGPL, OGRA said it had claimed 3.29 % for the same years against which it had been allowed 2.49% and now only 0.11% was being given to it.
However, OGRA limited their claims to a maximum of 2.6% and the financial impact of which would be staggered in the next five financial years, which amounted to an increase of less than 50 paisas per MMBTU, urging the gas companies to control their UFG losses.
(APP)
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