Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) have filed a petition for an increase in gas prices for the current FY 2019-20.

The Oil and Gas Regulatory Authority (OGRA) has announced schedule of public hearings on petitions from SNGPL and SSGCL for review of its estimated revenue requirements/ prescribed prices for FY 2019-20. The public hearing date of SNGPL has been fixed on Nov 19 in Lahore and public hearing of SSGCL will be held on Nov 20 in Karachi.

Sources said SNGPL has requested an increase of 31 percent in gas sale price, whereas SSGCL has proposed an increase of 8.5 percent.

The SNGPL has filed the petition before the OGRA for review of its ERR/ prescribed prices for FY 2019-20. The petitioner has projected a shortfall in revenue requirement for FY 2019-20 at Rs 42,296 million including Rs 28,725 million of previous financial year 2018-19, seeking increase in average prescribed price by Rs 194.01 per mmbtu in its prescribed prices effective from July 1, 2019 to compensate the increase in cost of gas and other components of the petition.

In petition, the gas company has sought cost of gas (Rs 561.79 per mmbtu), operating cost (Rs 96.45 per mmbtu), depreciation (Rs 61.37 per mmbtu), return on assets (Rs 64.97 per mmbtu), UFG adjustment (Rs 2.05 per mmbtu), cumulative previous year shortfall (Rs 78.47 per mmbtu), and other operating income (Rs 42.05 per mmbtu). The gas company has sought average prescribed gas price Rs 818.95 per mmbtu against current average prescribed price of Rs 624.93 per mmbtu or an increase in average prescribed price of Rs 194.01 per mmbtu (current year Rs 115.54 per mmbtu). The petitioner has sought services estimated of supply of RLNG to domestic consumers at Rs 92.60 per mmbtu and Rs 176.45 per mmbtu.

The SSGCL has filed petition on Oct 16 before the OGRA for review of its ERR/ prescribed prices for FY 2019-20. The petitioner has projected a shortfall in revenue requirement for FY 2019-20 at Rs 22,674 million, seeking increase in average prescribed price by Rs 62.52 per mmbtu in its prescribed prices effective from July 1, 2019 to compensate the increase in cost of gas and other components of the petition.

In petition, the gas company has sought cost of gas (Rs 685.98 per mmbtu), operating cost (Rs 64.32 per mmbtu), staggering of financial impact (Rs 10.12 per mmbtu), depreciation (Rs 16.06 per mmbtu), return on assets (Rs 20.20 per mmbtu), subsidy for LPG Air-Mix Projects (Rs 3.28 per mmbtu), UFG adjustment (Rs 28.72 per mmbtu), prior year shortfall (Rs 68.75 per mmbtu), and other operating income (Rs 20.75 per mmbtu). The gas company has sought average prescribed gas price at Rs 799 per mmbtu against current average prescribed price of Rs 736.48 per mmbtu or an increase in average prescribed price of Rs 62.52 per mmbtu.

Copyright Business Recorder, 2019