Government increases price of gas from Sui fields

Karachi: In order to support stakeholders, the government has decided to raise gas prices from Sui Gas field which would enable Sui Southern Gas Company (SSGC) and Pakistan Petroleum Limited (PPL) to increase their revenues. PPL retains entire extraction rights on the Sui gas field and SSGC is among the major buyers of gas being produced there.

In an announcement at the Pakistan Stock Exchange on Friday by PPL notified the rise in wellhead price of natural gas being sold from the Sui gas field. It said “The [newly] determined price is now equivalent to 55pc of the natural gas price under the Petroleum Exploration & Production (E&P) Policy, 2012.”

Originally under the 2001 E&P policy, prices for Sui fields had been fixed at 50pc but this new notification will permit the company to increase gas prices by 70pc to 75pc which accounts for 29pc of its revenues said analyst Muhammad Fawad Khan of BMA Capital Management.

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