ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) will hold two public hearings against petition filed by the Sui Northern Gas Pipeline Limited (SNGPL) for estimated revenue requirement (ERR) to meet its expenditure in the financial year 2021-22 and the previous year shortfalls.
The oil and gas regulator will hold the first public hearing in Lahore, on Tuesday (June 22), and in Peshawar on Thursday (June 24).
The Ogra, through a notification, has already invited all interested/affected persons, including gas consumers and general public, to furnish their comments, objections, suggestions and interventions in order to reach a just and fair determination.
The regulator has postponed the public hearings, scheduled for June 7 and June 9, to determine gas companies’ ERR, and prescribed price of gas for the fiscal year 2021-22.
The SNGPL has projected an increase of Rs1415.91 per mmbtu, including the previous year’s shortfall of Rs669.75 per mmbtu for the financial year 2021-22 in normal business.
The company also asked for the cost of re-gasified Liquefied Natural Gas (RLNG) at Rs27,940 million as part of the cost of gas.
In the petition, the gas company has asked for a total revenue requirement of Rs283,099 million, projected sales revenue at the current prescribed price of Rs211,900 million, total shortfall of Rs71,199 million in the revenue requirement and previous year revenue shortfall at Rs254,108 million.
The petitioner has further projected an increase at Rs137.47 per mmbtu to the cost of service for RLNG business for the above said financial year.
Rs42,093 million is required for laying of 11,500 kilometres’ distribution pipelines.
A public hearing on the determination of tariff for the Sui Southern Gas Company Limited (SSGC) has been rescheduled to be held on June 30, in Quetta, on ERR for financial year 2021-22.
Copyright Business Recorder, 2021