Oil and Gas Regulatory Authority (OGRA) has provisionally determined the estimated revenue requirements of Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) for the fiscal year 2021-22.
“Both determinations have been sent to the federal government for receipt of category-wise natural gas sale price advice as required under section 8(3) of the OGRA ordinance,” the authority said in a press note late on Tuesday night.
According to the summary of revenue requirement determination, the authority allowed a total average prescribed price of Rs686.77 per Million British Thermal Unit (MMBTU) on the network of SNGPL for the year 2021-22 against the demand of Rs1,415.90, subject to final advice by the government.
“The financial impact of SNGPL’s previous year’s shortfall of Rs254,108 million i.e. Rs669.75/MMBTU has been referred to the federal government for an appropriate policy decision and is, therefore, not made part of instant determination,” OGRA said.
Similarly, the Authority determined the gas price of Rs779.88 per MMBTU on SSGC’s network for the current fiscal year against the demand of Rs789.24.
OGRA said it had reduced the companies’ demand for increase in gas prices for the FY 2021-22.
Moreover, taking cognizance of high pendency of gas connections on both the companies’ network, the authority has directed the utilities to “immediately proceed for installation of all ongoing/incomplete projects, as previously authorised.”
The SSGC has specifically been directed to immediately proceed effectively and rigorously against a significant number of gas pilferers/non-consumers, located in its franchise area to bring down its ever-increasing Unaccounted For Gas (UFG) ratio.