SNGPL supplies gas to KP and Punjab; petition outlines an estimated revenue requirement for FY24 at Rs179.16bn
SNGPL's endorsed gas costs add up to Rs1,715.49 per MMBTu.
Organization looks for correction of rate to Rs2,961.98/MMBTu.
SNGPL computes cost of RLNG's administration at Rs72.16bn.
ISLAMABAD: To address the approaching income deficiency, the Sui Northern Gas Pipeline Restricted (SNGPL) is once more requesting a critical 137% expansion in the normal recommended gas costs, adding up to Rs1,715.49 per MMBTu.
The state-claimed organization, liable for providing gas to Punjab and Khyber Pakhtunkhwa, has presented a proper solicitation to the Oil and Gas Administrative Power (Ogra) for the monetary year 2023-24, looking for a modification of the rate to Rs2,961.98/MMBTu, compelling from July 1 of the ongoing monetary year.
The organization's appeal to Ogra frames an expected income prerequisite for FY24 at Rs179.16 billion, including Rs697 million designated for LPG air-blend projects in Gilgit for the continuous monetary year.
On this premise, SNGPL is looking for a climb in the normal recommended gas cost by Rs506.35/MMBTu, powerful from July 1, 2023. It has outstandingly consolidated the expense of re-gasified condensed flammable gas (RLNG) redirected to homegrown shoppers into the general expense of gas, in arrangement with a choice by the government bureau on October 10, 2023.
Furthermore, the utility has figured in Rs427.83 billion to balance shortages from earlier years. To legitimize a 137.6% expansion in normal endorsed costs to Rs2,961.98/MMBTu from July 1, 2023, SNGPL refers to the ascent in the expense of gas/RLNG and different parts illustrated in its request.
Moreover, SNGPL has determined the expense of RLNG's administration at Rs72.16 billion (identical to Rs293.07/MMBTu) for the ongoing monetary year. The organization demonstrates that the subject request is going through modifications in view of genuine expense information and marketing projections for July and August 2023, bringing about a decrease of the native gas business deficit from Rs181.516 billion to Rs179.160 billion.
The modified portion wise deficit and RLNG business cost for FY2023-24 are nitty gritty as Rs179.160 billion for native gas business and Rs427.830 billion for setbacks from earlier years. The absolute native gas business deficiency, comprehensive of earlier years' deficits, adds up to Rs606.990 billion, with an extra Rs72.160 billion assigned as the RLNG cost of supply, as expressed in the request.
Ogra has welcomed remarks from all intrigued and impacted parties, including gas purchasers and the overall population. A formal review on the request is planned for December 11, 2023, in Lahore, where the administrative power will decide the gas costs.
