SNGPL and SSGC Seek Increase in Gas Prices, Submit Applications to OGRA

ISLAMABAD:Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) have submitted applications to the Oil and Gas Regulatory Authority (OGRA), seeking an increase in average gas prices for the current fiscal year.

Both gas companies have requested that the proposed revised prices take effect retrospectively from July 1 of the current fiscal year.

Sui Northern has proposed an increase of Rs10.40 per million British thermal units (MMBTU), seeking to raise its average gas price from Rs1,702 to Rs1,712.40 per MMBTU.

Meanwhile, Sui Southern has requested a substantially higher increase of Rs366.75 per MMBTU, proposing to raise its average gas price to Rs2,071.75 per MMBTU.

Sui Northern has also included Rs60.147 billion in LNG service costs in its proposed gas price. According to its application, the LNG cost for the company will amount to Rs471.16 per MMBTU.

The company stated that limited availability of locally produced gas during the winter season would require additional arrangements to meet demand. For this purpose, it would need to arrange 16 LNG cargoes.

The gas companies have also cited an increase in international crude oil prices as one of the reasons behind their request for higher gas tariffs.

OGRA will conduct hearings on the applications submitted by Sui Northern and Sui Southern before making a decision regarding the proposed gas price increases.

Clarify the fiscal-year referenceAdd the requested SSGC starting price