SNGPL seeks gas price increase for FY 2024-25

Sui Northern Gas Pipelines (SNGPL) has filed a petition with the Oil and Gas Regulatory Authority (OGRA) to increase its average prescribed price by PKR 64.16 per mmbtu for the fiscal year 2024-25, bringing the new rate to PKR 1,810.38.

This revision is proposed based on a projected revenue shortfall of PKR 20.58 billion for FY 2024-25, with PKR 489 million attributed to the LPG Air mix project.

SNGPL's petition incorporates the cost of Regasified Liquefied Natural Gas (RLNG) diverted to local gas consumers, following an Economic Coordination Committee (ECC) decision ratified by the Federal Cabinet on October 30, 2023.

The cost of gas is linked to the international prices of High Sulfur Fuel Oil (HSFO) and crude oil/brent, as per agreements between the Federal Government and gas producers/suppliers.

Additionally, SNGPL has claimed the RLNG cost of service at PKR 304.27 per mmbtu for FY 2024-25.

Sui Northern Gas Pipelines Limited (SNGPL) is the largest integrated gas company in Pakistan, serving over 7.22 million consumers in North Central Pakistan.

It operates an extensive network in Punjab, Khyber Pakhtunkhwa, and Azad Jammu & Kashmir.