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 increases in average gas prices for the current fiscal year.
Both companies have requested that the proposed revised rates take effect from July 1 of the current fiscal year.
According to the applications, Sui Northern has proposed increasing its average gas price by Rs10.40 per million British thermal units (MMBTU), from Rs1,702 to Rs1,712.40 per MMBTU.
Meanwhile, Sui Southern has sought a significantly 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 liquefied natural gas (LNG) service costs in its proposed gas pricing calculation. The company has estimated the LNG cost at Rs471.16 per MMBTU.
In its application, SNGPL stated that limited availability of locally produced gas during the winter season would require additional arrangements to meet demand. The company estimates that it will need 16 LNG cargoes to manage the anticipated shortfall.
Both gas utilities have also cited rising international crude oil prices as one of the factors behind their requests for higher gas tariffs.
OGRA will review the applications submitted by Sui Northern and Sui Southern and conduct hearings before making a decision on the proposed gas prices.
