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SNGPL Seeks Tariff Hike of Rs. 1,294 per MMBTU for FY23

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Legal Expert
SNGPL Seeks Tariff Hike of Rs. 1,294 per MMBTU for FY23
The Sui Northern Gas Pipeline Limited (SNGPL) has sought an increase of Rs. 1,294.02 per million British thermal units (MMBTU) for the ongoing fiscal year 2022-23 (FY23). In this regard, Oil and Gas Authority (OGRA) conducted a public hearing here on Monday to review the SNGPL’s estimated revenue requirements/prescribed prices for the FY23. SNGPL had earlier filed a petition before OGRA on 14th October. In its petition, SNGPL had projected a shortfall in revenue requirement at Rs. 178,814 million, including Rs. 445 million on account of liquefied petroleum gas (LPG) Air-mix project for FY23, seeking an increase in its average prescribed price by Rs. 488.08/MMBTU with effect from 1st July 2022. SNGPL also included Rs. 295,268 million as a shortfall pertaining to previous years, thereby seeking a total increase in the average prescribed price by Rs. 1,294.02/MMBTU. Besides, the company also estimated the re-gasified liquefied natural gas (RLNG) cost of service at Rs. 1,015.64/MMBTU for FY23 including Rs. 762.44/MMBTU on account of the differential impact of RLNG diversion.
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