Special Report
ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) in Pakistan has determined the transportation tariff for Sui Northern Gas Pipelines Limited (SNGPL) for the shippers who transported its gas through SNGPL’s network in FY 2019-20 & FY 2020-21. This move is aimed at opening up the gas market in Pakistan for private sector players, fostering competition, reducing tariffs, and improving the energy supply situation in the country.
Under OGRA Gas (Third Party Access) Rules, 2018 and Pakistan Gas Network Code, OGRA has allowed a total of Rs 27.83 per 1000 Cubic Feet (MCF) tariff for the average capacity charge and average utilization charge of SNGPL’s transmission network for FY 2019-20 & FY 2020-21, which is lower than the total tariff of Rs 38.00 per MCF demanded by SNGPL. Similarly, for the distribution network, OGRA has approved a tariff of Rs 95.76/MCF, which is lower than the demanded tariff of Rs 118.82/MCF.
For FY 2020-21, SNGPL sought Rs 38.85/MCF under the head average capacity charge of its transmission network, and OGRA allowed Rs 29.58/MCF. For the distribution network, SNGPL claimed 125.77/MCF, and OGRA approved 101.75/MCF.
The regulator’s emphasis on facilitating the Third Party Access (TPA) regime and ensuring compliance with OGRA’s decisions by the transporter is noteworthy, as it will help ensure a level playing field for all players in the market.
The move is expected to attract private sector investment in the LNG market, which will lead to increased supply and better pricing for consumers. The determination of transportation tariff for LNG shippers by OGRA is a significant step towards opening up the market for private sector players in Pakistan.
