ISLAMABAD: The Sui Northern Pipeline Limited (SNGPL) has recently filed a writ petition against the Oil and Gas Regulatory Authority (OGRA)’s decision on the Final Revenue Requirement (FRR) for FY 2022-23, dated June 27, 2024, issued approximately one year ago.
The SNGPL has challenged the regulator’s decision with respect to the calculation of return on assets and the human resource benchmark cost.
The oil and gas regulator stated that it issued its FRR decision for FY 2022-23 on June 27, 2024, purely on the basis of SNGPL’s own petitions, in accordance with the due process prescribed by law, and after providing SNGPL a fair opportunity of hearing.
The SNGPL had exercised its right to file a motion for review of the authority’s decision, which was subsequently issued on December 19, 2024.
However, documents reveal the Sui Northern did file an amendment to its Motion for Review against FRR decision for FY 2022-23 vide letter No RA-LNG-023-23 dated November 11, 2024, more than a month before the decision of December 19, 2024, after they came to know about the decision of SSGC dated 1.10.2024, which for some suspicion reason OGRA is still hiding and even after lapse of seven month, is still not made public and is not available on their website.
Furthermore, in its earlier decision of February 02, 2024 for SNGPL, vide para 4.8 it has allowed revision in rate of return, since its sister concern has requested 20.64 per cent the same was automatically allowed to SNGPL.
In October 2024, SSGC share price was 8.77 per share. It started going up after the decision and went to as high as 48.96 on December 31, 2024.
The regulator said that this unwarranted campaign initiated by SNGPL is “entirely baseless” and appears to be an attempt to influence the regulator’s upcoming determination regarding the Estimated Revenue Requirement (ERR) for FY 2025-26, for which public hearings are currently under way.
In the instant petition, a substantial amount of over Rs39.496 billion has been claimed solely under HR costs. Similarly, a return on assets of Rs23.30 billion has been demanded for FY 2025-26.
Since the matter is sub judice before the honourable court, the OGRA will refrain from commenting on the contents of the related news. A detailed response has already been submitted before the Lahore High Court (LHC), Lahore.
With respect to the reported increase in the SSGC’s share price in the Pakistan Stock Exchange, the figures being circulated appear to be significantly exaggerated.
Copyright Business Recorder, 2025
