OGRA fixed Provisional RLNG prices

The Oil and Gas Regulatory Authority (Ogra) has fixed the provisional RLNG prices. A decision was also released on the determination of Unaccounted for Gas (UfG) in respect of provisional RLNG price.

Both gas utility companies – Sui Northern Gas Pipelines Limited (SNGPL) and the Sui Southern Gas Company Limited (SSGCL) had assured in documents Performance Agreement 2021-23 with Ministries, the gas companies will implement ongoing three years UFG Reduction Plan by SNGPL (reduction of four percent in three years from financial year 2019-20 to financial year 2021-22) and the SSGC will implement ongoing three years UfG Reduction Plan (reduction of 7.2 percent in three years from financial year 2019-20 to financial year 2021-22).

The observations made by OGRA at the time of giving the decision were that determination of actual UFG separately for indigenous supply and RLNG, requires independent and in-depth review, verification, analysis, due diligence and calculation of actual purchases, sales, GIC, free gas facility, amount claimed against rupture. While in this case both companies do not have separate RLNG measurement mechanism at their transmission and distribution networks.

Indigenously produced gas and RLNG are supplied through the same distribution network and through the same or single consumer meters due to which both gas companies are arbitrarily allocating domestically-produced gas and RLNG supplied to consumers.

The RLNG has to be ring-fenced in terms of accounts and systems sufficient to enable determination of actual distribution loss. Both the companies are not maintaining any mechanism to effectively achieve ring fencing.

Keeping this in view OGRA has passed the decision that subsequent to the finalisation of audit and in strict compliance of the ECC decision and policy guidelines, the UFG values provisionally charged to RLNG consumers shall be adjusted based on actual average UfG of RLNG for last financial year as determined by the Ogra.  SNGPL, SSGC can file a review petition against this decision.