OGRA allows SNGPL to offer 120,000 new gas connections

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has in principle allowed Sui Northern Gas Company Limited (SNGPL) to give 120,000 new gas connections to domestic consumers in outgoing fiscal year, a statement said on Friday.

However, it would be subject to actualisation at Final Revenue Requirement (FRR) of this year of SNGPL, the regulator said it in its statement.

“Keeping in view the directions of the members of standing committee [on Energy Petroleum Division] and under the power conferred under Section 6(2)(O), and (y) of OGRA Ordinance, 2002 and as provided vide Rule 2(d) “Motion” of Natural Gas Tariff Rules 2002, the instant matter is treated as a Motion and the Authority decided to allow in principle 120,000 domestic connections for FY2019/20, subject to actualization at Final Revenue Requirement of the said year,” OGRA said.

It further said that as regarded to establishment of the Regional office at Karak, “the authority observes that criteria of establishing region/sub-region has not been finalised by the authority in the absence of credible data, which is yet to be provided by the Sui companies”.

Hence, keeping in view the necessity of attending/facilitating consumers under existing stage of development of network at Karak, the authority advised the SNGPL to re-enforce its consumers Service Center at Karak and delegate adequate powers to the same to facilitate the public.

The authority also said it would review the found realities later for setting up a Region at Karak. Furthermore, same directions apply to Jehangira and Pabbi consumer office, the OGRA in its order said.

Last month National Assembly’s Standing Committee on Energy (Petroleum Division)

had recommended OGRA to grant SNGPL permission for issuing 125,000 additional connections during the current fiscal year.

The committee meeting, chaired by Imran Khattak, in its recommendations asked the OGRA to allow the company for giving additional connections without Unaccounted For Gas (UFG) allowances, besides permitting opening/upgrading SNGPL offices at Karak, Bannu, Hangu and Jehangira to ensure better services there.

The SNGPL, which had been given a quota of 300,000 connections for the year 2019-20, had sought the authority’s permission for additional connections with the request of relaxation on account of UFG losses ratio as the extended transmission network risked more losses.