Energy supply: SNGPL requests OGRA for cut in gas tariff

Stakeholders criticise company for Rs88b investment plan

PESHAWAR: Sui Northern Gas Pipelines Limited (SNGPL), in a petition, has requested the Oil and Gas Regulatory Authority (Ogra) to reduce gas tariff by Rs30 per million British thermal units (mmbtu) in each category of normal gas consumers, which would give a relief to them.

The petition was presented during a public hearing on Thursday in front of various stakeholders. Ogra Chairperson Uzma Adil Khan and senior officials of SNGPL and Ogra were present on the occasion.

The petition was presented by SNGPL Chief Financial Officer Saghirul Hassan Khan. The company requested Ogra to reduce the prices of gas for normal consumers owing to decrease in oil prices internationally which are linked with gas prices. Ogra chairperson stated that Ogra welcomes the SNGPL request for decrease in gas rates.

Meanwhile, the SNGPL’s petition came under severe criticism from various stakeholders.

Representative of All Pakistan Textile Mills Association K-P chapter Syed Ikhlaq Ahmad burst over SNGPL for estimated operating cost of Rs35 billion. He said that the proposed cost is unjustifiably high compared to Rs22 billion last year, all the more so considering lower gas supply in the country.

He also criticised the company for increasing the number of consumers. “First the company should properly facilitate the current consumers to resolve the low gas pressure issue [and only] then should they increase the number of consumers.”

Moreover, he said that SNGPL had never elaborated how the company’s Rs88-billion investment programme would benefit the general public and stakeholders.

“There is no cost benefit analysis of Rs88-billion investment [that] has been mentioned in the revenue petition.” PTI Dina Naz Khatak said that gas consumers from regions where the gas was being obtained should be given priority and they should not have to settle for low pressure.

Published in The Express Tribune, August 26^th, 2016.

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