Fertilizer plants to pay less: Ogra raises gas prices for power plants

The Oil and Gas Regulatory Authority (Ogra) has reduced gas prices for fertilizer plants and increased prices for power producers, a notification issued by the authority said. According to the notification, the regulator has increased gas prices for power plants by Rs 13 per Million British Thermal Unit (mmbtu) and for fertilizer industry it has reduced gas price by Rs 76.59 per mmbtu, effective from April 1, 2016. The regulator has set new gas tariff for all the power plants at Rs 613 per mmbtu against Rs 600 per mmbtu. The new gas tariff for fertilizer industry is set at Rs 123.41 per mmbtu against Rs 200 per mmbtu. Ogra officials said that new tariff for domestic and commercial consumers would be announced from July 2016.
On SNGPL, the new gas price for fertilizer sector had been announced for Pak Arab Fertilizer Limited, Pak China Fertilizer Limited and Hazara Phosphate Fertilizer Plant. On SSGCL system, gas price has been announced for Fauji Fertilizer Bin Qasim Limited and Engro Fertilizer Company on system of Mari Petroleum Company Limited. The gas price for fertilizer sector being used as fuel for generation of electricity had been set at Rs 600 per mmbtu.
A senior government official said that gas price for fertilizer sector had been reduced to provide relief to the farmers. He said that it would result in reduction of input cost for farming sector. Following this cut, fertilizer sector would have to pass on relief to the consumers.
Official said that gas prices for power sector were already low and therefore, its price had been increased. He said that it would result in hike in generation cost for gas based power plants in Pakistan. It would be recovered from consumers on account of monthly fuel adjustment. He said that consumers were enjoying relief on account of major cut in electricity prices on account of fuel adjustment and therefore, increase in gas price for power plants would not reflect for power consumers.
Meanwhile, National Electric Power Regulatory Authority (Nepra) announced a power tariff for 747 megawatt (MW) Guddu power plant. The regulator approved Rs 6.16 per unit tariff for power generation through gas source and Rs 9.55 per unit for power generation through High Speed Diesel (HSD). The regulator also approved total cost of the project at Rs 74.5 billion instead of Rs 79 billion.