Domestic gas consumers in Pakistan are expected to incur costs totaling Rs163.058 billion in the current financial year due to the diversion of re-gasified liquefied natural gas (RLNG). Sui Northern Gas Pipeline Limited (SNGPL) has petitioned the Oil and Gas Regulatory Authority (Ogra) for a significant price increase of Rs64.16 per MMBTU for the 2024-25 fiscal year.
In its petition submitted on October 15, 2024, SNGPL projected a revenue shortfall of Rs20.582 billion for FY2024-25, which includes Rs489 million attributed to the LPG Air Mix project. The company has requested a revised average tariff of Rs1,711.73 per MMBTU for all consumer categories, effective July 1, 2024, with RLNG supply costs set at Rs279.87 per MMBTU.
The petition cites the costs associated with the RLNG volumes diverted to domestic consumers, which are tied to the international prices of high-sulfur fuel oil (HSFO) and crude oil or Brent, as per agreements with Qatar and ENI. SNGPL has estimated the RLNG service cost at Rs304.27 per MMBTU for FY2024-25.
Ogra is scheduled to conduct a public hearing on this petition on November 5, 2024, at SNGPL Headquarters in Lahore.
