Govt may allow SNGPL to recover Rs 100b LNG cost from consumers

The government is likely to allow Sui Northern Gas Pipeline Limited (SNGPL) to recover Rs 100 billion in revenue requirement on account of LNG supply to domestic consumers.

SNGPL has been diverting LNG to domestic consumers during the last four winter seasons following direction of the federal government to overcome gas crisis. MoS, Secretary Petroleum appreciate SNGPL initiatives for gas supply

However, it had not been able to recover this amount from the domestic consumers.

The regulator had not allowed the company to recover this amount as there was no legal framework to recover the cost in weighted average price.SNGPL seeks an increase in gas prices by 66%

The previous government of PTI had passed weighted average cost of gas bill from the parliament.

However, it had been challenged in Sindh high court and Sindh government had become a party.

Punjab province is the big consumer of LNG but it had less gas production.SNGPL Financial Results: Company earns Rs 15.8b profits for 2020-21

Therefore, other provinces of KPK, Balochistan and Sindh were not ready to bear cost of expensive LNG.

Now, the present government had chalked out a plan that SNGPL be allowed to recover Rs 100 billion from the consumers.

Rs. 100 billion has been estimated for supplying costly LNG to domestic consumers on SNGPL network to meet the demand during winters months.

In this regard, the federal government will issue a guideline to Oil and Gas Regulatory Authority (Ogra) to recover this amount in financial revenue requirement for the company.