ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) Friday determined a Sui Northern Gas Pipeline Limited’s petition pertaining to transportation tariff to be used for issuing invoices to the shippers for using pipeline of the SNGPL for transportation of their gas under third-party access (TPA) regime.
The tariff will boost the private-to-private business in gas sector under OGRA’s determined TPA rules. The Economic Coordination Committee already ratified the decision of the Petroleum Division on January 17, 2023.
The Oil and Gas Regulatory Authority (Ogra) has determined transportation and distribution tariff on two separate petitions filed for fiscal year 2020-21 and 2019-20 based at TPA Rules 2018 and PGNC. The authority, however, notes that despite promulgation of TPA Rules 2018, no single molecule has yet been transmitted in the distribution system. At transmission network, M/s Pak Arab Fertilizer Ltd is accessing the petitioner pipeline system.
The Ogra determined throughput volume of transmission at 2,540 mmscfd and 1,230 mmscfd at distribution network for Sui Northern Gas Pipeline Limited (SNGPL). The transmission cost has been determined at 8,968 mmscfd and 13,777 mmscfd distribution cost. Depreciation component of the transportation cost at transmission stage has been determined 7,392 per mmscfd and 13,054 per mmscfd at distribution stage. The return on assets on transmission network has been determined 10,020 per mmscfd and for distribution network 17, 175 per mmscfd. Total fixed cost has been determined 26,380 per mmscfd for transmission network and 44,005 per mmscfd for distribution.
The regulator has determined Rs 1,043 million for transmission network and Rs 1,672 million for distribution.
The petitioner based on MERR, has filed the petition on July 28, 2022 for determination of transportation tariff for fiscal year 2020-21 under OGRA TPA Rules 2018 read with Pakistan Gas Network Code (PGNC) requested to include Rs 6,497 million and Rs 17,104 million as fixed costs in terms of transmission and distribution activities respectively. The petitioner has also claimed Rs 806 million and Rs 1,666 million as variable costs component against transmission and distribution activates respectively.
The Ogra determined throughput volume of transmission at 2,540 per mmcfd and 1,230 per mmcfd at distribution network and total fixed cost has been determined at Rs 25,067 million for transmission and Rs 41, 429 million for distribution. The decision has been taken on the petition for fiscal year 2019-20.
Copyright Business Recorder, 2023
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