RLNG tariff hiked for SSGC due to system losses

The Oil and Gas Regulatory Authority (OGRA) has increased Regassified Liquefied Natural Gas (RLNG) tariff for the Sui Southern Gas Company Limited (SSGC) due to system losses, ARY News reported on Tuesday.

The high tariff would led the Sindh and Balochistan industries, commercial and Kapco power plants to buy expensive RLNG following the OGRA’s decision after recording high Unaccounted for Gas (UFG) losses – caused by theft, leakage and measurement errors – in the SSGC supply network.

The RLNG price for SSGC consumers was fixed at $13.13  per MMBtu and $12.6493 per MMBtu for Sui Northern Gas Pipelines Limited (SNGPL).

Despite lowering prices in global market, the authority increased RLNG tariff. According to the company’s annual financial report, SSGC suffered over Rs5 billion losses this fiscal year.

The tariff hike was approved amid complaints of interrupted gas supply to the export-oriented units in Karachi – the commercial hub of Pakistan.

Earlier in the day, Karachi Chamber of Commerce & Industry (KCCI) President Mohammed Tariq Yousuf expressed disappointment over the two-day gas closure to the industries.

He demanded the premier to take notice of the SSGC’s disastrous moves which decreased the production activities by 30%.

Yousaf said that it was an illogical move to deprive Karachi of gas and RLNG. He warned of a 30% drop in production due to interrupted or reduced gas supply to the export-oriented units.

The KCCI president criticised that Sindh is contributing 70% of gas production in the country but its industries are deprived of uninterrupted supply.

In June, multiple cargoes of Regasified Liquefied Natural Gas (RLNG) arrived in Pakistan, bringing much-needed relief to the country’s gas crisis.

Petroleum officials confirmed that the inclusion of RLNG in the gas system has played a pivotal role in resolving the crisis. They stated that there is currently an ample supply of 1800 million cubic feet of gas in the system.