ISLAMABAD: Domestic gas consumers in Pakistan are set to face a significant financial impact as Sui Northern Gas Pipeline Limited (SNGPL) seeks an increase in gas prices by Rs64.16 per MMBTU for FY2024-25. In its recent petition to the Oil and Gas Regulatory Authority (OGRA), SNGPL requested a revised prescribed tariff of Rs1,711.73 per MMBTU, citing an estimated revenue shortfall of Rs20.58 billion, including Rs489 million allocated to the LPG Air Mix project.
A substantial portion of this price hike—totaling Rs163.06 billion—comes from the cost of diverted imported RLNG, following the Economic Coordination Committee’s (ECC) 2023 decision to supply RLNG to domestic consumers. The cost of RLNG is tied to international crude oil and HSFO prices under agreements with Qatar and ENI, with a projected RLNG cost of service at Rs304.27 per MMBTU.
SNGPL’s revenue projections are based on fluctuating exchange rates, crude oil, and HSFO prices, along with expected RLNG supplies. The company estimates 49,180 BBTU of RLNG will be redirected to system gas consumers due to reduced demand from the power sector. OGRA is set to review this petition in a public hearing on November 5, 2024, at SNGPL’s Lahore headquarters.
Story by Khalid Mustafa
