Islamabad August 18 2021: Oil and Gas Regulatory Authority (OGRA) has allowed increase of PKR 86.9 per mmbtu for Sui Northern Gas Company Limited (SNGPL) and PKR 54.57 per mmbtu for Sui Southern Gas Company (SSGC) to meet their revenue requirement.
Oil and Gas Regulatory Authority (OGRA), vide its decisions dated August 17, 2021 has determined the Estimated Revenue Requirement of SNGPL and SSGCL for FY 2021-22. Both determinations have been sent to Federal Government for receipt of category-wise natural gas sale price advice.
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OGDC rallied almost 7 percent on dividend expectation of PKR17.5 per share
OGRA has allowed SNGPL to increase average gas prices to PKR 686.77 per mmbtu for FY22 from current level of PKR 599.84 per mmbtu.
The financial impact of SNGPL’s previous years’ shortfall of PKR 254,108 million PKR 669.75 per MMBTU has been referred to Federal Government for an appropriate policy decision and is, therefore, not made part of instant determination.
OGRA has increased average price of SSGC by PKR 54.47 per mmbtu to PKR 779.88 per mmbtu from existing level of PKR 725.42 per mmbtu.
OGRA has reduced the gas companies’ demand for increase in gas prices for FY 2021-22. Moreover, taking cognizance of high pendency of gas connections in gas utilities’ system besides many incomplete development projects, the Authority has directed sui companies to immediately proceed for installation of all ongoing/incomplete projects, as previously authorized. In respect of SSGCL, the company has specifically been directed to immediately proceed effectively and rigorously against significant number of gas pilferers /non consumers, located in its franchise area so as to bring down its ever-increasing UFG.
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.
