ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) will hold public hearings on the revenue requirements of both gas companies - Sui Northern Gas Pipeline Limited (SNGPL) on March 25 and Sui Southern Gas Company (SSGC) on March 18 to determine the prescribed gas prices for fiscal year 2024-25.
The SNGPL submitted their petitions for the determination of estimated revenue requirement (ERR) for the fiscal year 2024-25 for 7.6 million consumers on the system gas network. According to the website of the Ogra, the SNGPL projected ERR/prescribed prices for next fiscal year Rs 4,446.89 per mmbtu besides, the RLNG cost of service at Rs 325.06 per mmbtu.
The gas company projected Rs 2,646.19 per mmbtu including previous years’ shortfall (Rs475.95 per mmbtu for fiscal year 2024-25 only) in prescribed prices of system gas business and Rs325.08 per mmbtu as cost of supply for RLNG business for next fiscal year.
In other words, it asked for Rs 189.179 billion for the indigenous gas business, Rs 1,051.791 billion for previous years’ shortfall and Rs 79.835 billion for the cost of supply of RLNG.
At present, the total consumers on SNGPL’s system is 7.6 million including 7,891 industrial and 76,673 commercials and 7,528,371 domestic consumers. The company requires fund for laying of network to the tune of 5,700 kms in respect of new towns and villages at a cost of Rs13 billion and the construction of 500 new TBSs. DRS at a cost of Rs 2,095 million in view of existing demand-supply gap of natural gas.
It projected RLNG diversion volume of 80,155 bbtu to the domestic sector, cost of gas including RLNG at Rs 702.411 billion, operating cost including HR cost Rs 56.618, late payment surcharge (LPS) to creditors and financing cost of working capital Rs 125.32 billion in the backdrop of regular gas sale price revision by the federal government, capital expenditure amounting to Rs 56.754 billion
Whereas, the SSGC projected average prescribed price at Rs 1,740.80 per mmbtu for the next fiscal year. Besides, the petitioner projected RLNG cost of service at Rs 39.56 per mmbtu. The petitioner had projected Rs 1,402 million for the laying of 179 km distribution mains to connect various new towns and villages.
Copyright Business Recorder, 2024
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