Sui companies propose gas price hikes to meet financial needs

Pakistan’s state-run Sui gas companies have proposed price increases for the next fiscal year to meet rising financial needs, while bagasse-based power producers seek lower tariffs in separate regulatory filings.

Sui Northern Gas Pipelines Ltd. (SNGPL) on Thursday requested the Oil and Gas Regulatory Authority (OGRA) to raise its average gas price to PKR 2,485.72 ($2.50) per million British thermal units (MMBTU), citing financial requirements of PKR 709.97 billion ($2.5 billion).

The company aims to recover a PKR 207.43 billion shortfall. Public hearings on the proposal will be held in Lahore on April 18 and Peshawar on April 28.

Meanwhile, Sui Southern Gas Company (SSGC) sought approval for an average gas price of PKR 4,137.49 per MMBTU, with total financial needs estimated at PKR 883.54 billion.

The company plans to recoup a PKR 44.33 billion deficit. Hearings for SSGC’s request are scheduled in Karachi on April 21 and Quetta on April 23.

Bagasse Power Producers Push for Cheaper Tariffs

In a separate development, 11 bagasse-based power plants have approached the National Electric Power Regulatory Authority (NEPRA) to reduce electricity tariffs. A hearing on the petitions is set for April 16 in Islamabad.

Among the applicants are JDW, Hamza Sugar Mills, RYK Mills Ltd., Chiniot Power Ltd., Almoiz Industries Ltd., Chanar Industries, Thal Industries Corporation and Shak Taj Sugar Mills.

The producers have requested a review of fuel cost tariffs, permission to sell electricity directly to large consumers and a 50% reduction in working capital requirements.

Additionally, Attock Gen Ltd. and Foundation Power Company jointly filed for adjustments to their operations and maintenance indexation mechanism and a reduction in the insurance cap to 0.90%. NEPRA will hear their case on April 16.

World Bank funds $390 million for Tarbela extension

A three-member World Bank delegation visited the 1,530-megawatt Tarbela Fifth Extension Hydropower Project this week to assess progress. Led by the bank’s regional infrastructure director for South Asia, the team inspected construction work on the intake, tunnel, penstock and powerhouse.

WAPDA Chairman Lt. Gen. Sajjad Ghani (retired) thanked the World Bank for its $390 million funding and emphasized the project’s role in Pakistan’s low-cost, clean energy strategy. The extension, set to begin operations in 2026, will add 1.34 billion units of electricity annually, boosting Tarbela’s total capacity to 6,418 MW.

Construction is on schedule, officials said during the delegation’s briefing. The project is part of WAPDA’s plan to expand Pakistan’s hydropower resources.