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 their average prescribed gas prices for the current fiscal year.
The gas utilities have requested that the proposed increases take effect retrospectively from July 1, the beginning of the current fiscal year.
SNGPL has proposed an increase of Rs10.40 per million British thermal units (MMBtu), seeking to raise its average prescribed price from Rs1,702 to Rs1,712.40 per MMBtu.
Meanwhile, SSGC has sought a substantially higher increase of Rs366.75 per MMBtu, proposing to raise its average prescribed price to Rs2,071.75 per MMBtu.
SNGPL has also included Rs60.147 billion in LNG service costs in its proposed gas price. According to its application, the cost of LNG for the company would amount to Rs471.16 per MMBtu.
The company stated that limited availability of indigenous gas during the winter season would necessitate arrangements for additional supplies. It estimated that 16 LNG cargoes would be required to meet the demand.
Both gas utilities have also cited an increase in international crude oil prices as a factor behind their request for higher gas prices.
OGRA will conduct hearings on the applications submitted by SNGPL and SSGC before making a decision on the proposed gas price adjustments.
