"A news item published in the Business Recorder dated 23.01.2016 with the subject "FCCI criticises billing of LNG", misrepresents facts of billing the price for LNG to textile consumers. In this regard, it is imperative to inform that the supply of RLNG to textile sector is being made with mutual agreement and understanding between the parties and the consumers had agreed to pay in accordance with invoices of SNGPL.
SNGPL had duly informed the consumers of the components of the RLNG Price determination and rightly given a price in accordance with the prevailing RLNG price notified by PSO. It is a well established fact that the LNG DES price is a variable in the OGRA RLNG price determination, which is dependent upon PSO's import price of cargoes on a monthly basis, and purely beyond the control of SNGPL. Please note that SNGPL does not have any control on the procurement of LNG from the international suppliers.
"It is further clarified that a subsidy was only granted to the extent of US $1 MMBTU approx. on the applicable RLNG price notified by PSO, based on the imported price of cargoes. It is also common knowledge that the RLNG prices are never fixed and continue to vary based on international prices. SNGPL is not charging any return / profit or even its cost of service from Textile sector while endeavouring to meet the energy shortfall in pure national interest.
"SNGPL as a responsible utility company had duly informed consumers that upon receipt of the said subsidy, it will adjust the RLNG bills amount accordingly while it is bound to initially raise invoice for such amount per the terms of the signed agreement. It is again highlighted that SNGPL always abides by the policies of the government to facilitate the supply of LNG to textile and other LNG based consumers."