SNGPL seeks gas price increase of Rs506/MMBTU, citing revenue shortfall

December 13, 2023 (MLN): Sui Northern Gas Pipelines Limited (SNGPL) on Wednesday appealed to the Oil and Gas Regulatory Authority (OGRA) for an increase in its average prescribed gas price by Rs506.35 per MMBTU, effective July 01, 2023, as the company has projected a shortfall in its revenue requirement of Rs179.16 billion.

According to a press release issued today, OGRA held a public hearing on SNGPL’s petition for the review of its Estimated Revenue Requirement/Prescribed Prices for the fiscal year 2023-24.

The revenue shortfall includes Rs697 million on account of the LPG Air-mix project for FY 2023-24.

Moreover, the demanded increase in gas price encompasses the cost of RLNG diverted molecules to domestic consumers, as part of the cost of gas in the light of the decision of the Federal Cabinet dated October 30, 2023.

The petitioner has also included Rs427.83bn against the previous year's shortfall, thereby seeking total average prescribed Rs2,961.98/MMBTU with effect from July 01, 2023 to compensate for the increase in the cost of gas/RLNG and other components of the petition.

Besides the above, the petitioner has estimated the RLNG cost of service at Rs72.16bn (i.e. 293.07/MMBTU) for the Financial Year 2023-24.

Therefore, OGRA conducted a public hearing at Lahore to provide the opportunity of hearing to consumers/general public and interested/affected persons.

The final verdict on the petition shall be issued by the authority after considering the viewpoints of all stakeholders.

Copyright Mettis Link News