Sui Northern Gas Pipeline Limited (SNGPL) has submitted a petition to the Oil and Gas Regulatory Authority (Ogra) outlining a projected revenue requirement of Rs179.16 billion for the fiscal year 2023-24. This estimate includes an allocation of Rs697 million for LPG air-mix projects in Gilgit during the ongoing fiscal year. To address this revenue requirement, SNGPL is seeking a substantial increase of Rs506.35/MMBTu in the average prescribed gas price, effective from July 1, 2023.
The proposed hike incorporates the cost of re-gasified liquefied natural gas (RLNG) redirected to domestic consumers, following a federal cabinet decision on October 10, 2023. Additionally, SNGPL has factored in Rs427.83 billion to offset shortfalls from previous years. Justifying the 137.6 percent increase in average prescribed prices to Rs2,961.98/MMBTu from July 1, 2023, SNGPL points to the rising costs of gas/RLNG and other components.
SNGPL has calculated the cost of RLNG service at Rs72.16 billion (equivalent to Rs293.07/MMBTu) for the current fiscal year. The petition is undergoing revisions based on actual cost data and sales figures for July and August 2023, resulting in a reduction of the indigenous gas business shortfall from Rs181.516 billion to Rs179.160 billion.
Segment-wise shortfalls and RLNG business costs for FY2023-24 are detailed as Rs179.160 billion for indigenous gas business and Rs427.830 billion for shortfalls from previous years. The total indigenous gas business shortfall, inclusive of previous years’ shortfalls, amounts to Rs606.990 billion, with an additional Rs72.160 billion designated as the RLNG cost of supply.
Ogra has invited comments from all stakeholders, including gas consumers and the public, and has scheduled a public hearing on the petition for December 11, 2023, in Lahore to determine gas prices.
