SNGPL Seeks Hike in Gas Transportation and Distribution Tariff for Private Companies

oil and gas

ISLAMABAD: Sui Northern Gas Pipelines Limited (SNGPL) has proposed a significant increase in gas transportation and distribution tariffs for the fiscal year 2024-25. The company is requesting a hike of Rs184 per MMBTU for transportation and Rs614 per MMBTU for distribution, compared to the previous year, specifically for third-party private companies that use SNGPL’s infrastructure to supply gas to bulk consumers.

During a hearing held by the Oil and Gas Regulatory Authority (OGRA) at Sui Southern Gas Company’s (SSGC) office, SNGPL’s CFO encouraged private sector participation in using the company’s pipeline network. Despite the proposal, some industry stakeholders, including Universal Gas Distribution Company’s CEO, opposed the tariff increase, advocating for uniform rates to benefit the majority of consumers and reduce overall gas prices.

The session highlighted the need for collaboration between Sui companies, OGRA, and the private sector to stabilize gas prices and address inefficiencies, such as unaccounted-for gas (UFG) and high port charges.

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