OGRA’s Notification on RLNG Rates Contradicts the Law: Sui Northern

According to officials, the price of Re-Gasified Liquefied Natural Gas (RLNG) had been fixed under the Petroleum Development Ordinance for five years.

According to the spokesperson of Sui Northern Gas, Oil & Gas Regulatory Authority (OGRA) is not authorized to set the Unaccounted for Gas (UFG) benchmark for RLNG under Petroleum Levy Ordinance, and they are bound to implement the decision of the cabinet.

The Cabinet Committee had decided to include the actual percentage of UFG in the pricing of LNG. However, OGRA unilaterally decided on a 6.3 percent UFG benchmark for distribution customers.

RLNG was declared a petroleum product in consultation with OGRA, which was to become the basis for pricing decisions.

The spokesperson remarked that OGRA’s decision contradicts the law, the Cabinet decision and the Supreme Court ruling. He further added that this decision by OGRA poses a threat of severe financial crisis for gas companies and LNG importers.

Sui Northern Gas reserves the right to present the facts regarding this decision on the relevant forums, he said.