The management of Sui Southern Gas Company (SSGC) has issued a warning regarding the company’s financial stability should gas prices remain stagnant.
As per a news report, at a recent public hearing convened by the Oil and Gas Regulatory Authority (Ogra), SSGC advocated for a necessary price adjustment to sustain its operations amidst mounting financial pressures.
Seeking a significant increase of Rs274.40 per million British thermal units (mmBtu), effective from July 1, 2024, SSGC aims to address its revenue deficit projected at Rs359 billion.
Central to the company’s plea is the need to offset a staggering Rs300 billion in outstanding receivables accumulated over the past two years.
Furthermore, SSGC officials emphasised the ripple effects of outstanding dues on hydrocarbon exploration activities by oil and gas companies.
These sentiments were echoed by representatives from Pakistan LNG Limited (PLL), who underscored a 23% decline in gas reserves over four years, necessitating reliance on costly LNG imports.
Earlier , Sui Northern Gas Pipelines Limited (SNGPL) sought approval from the OGRA) to increase gas prices by 147%.
The SNGPL has requested a price increase of Rs 2,646.18 per mmbtu to set a new average price of Rs 4446.89, which would multiply the burden on the people already grappling with soaring rates.
Sui Northern has estimated a revenue shortfall of Rs 189.18 billion. The OGRA will hear the SNGPL’s application on March 25 in Lahore and March 27 in Peshawar.
