In a statement to the Pakistani stock exchange, Sui Northern Gas Pipelines Limited (SNGPL) announced that the Lahore High Court ruled in the case of reducing Unaccounted For gas (UFGs) of LNG consumers in favor of the company.

The decision was taken after lengthy consultations with both parties and the admissibility of the SNGPL petition in a public meeting. However, a written decision has yet to be taken.

As a reminder, last year OGRA unexpectedly decided to reduce the UGF quotas in the SNGP distribution network to 6.3% from August-2020. Prior to this, OGRA and the Federal Cabinet set clear guidelines for the RLNG: the UFG in the RLNG network was a pass-on factor, that is, a fully adjustable in price (which was 10.67% for the SNGP distribution network and 17.11% for the SSGC).

While efforts have been made to treat LNG consumers in the same way as other Gas consumers, that figure fell to 6.3%, as shown by monthly prices. However, the SNGPL was influenced by the regulator’s decision and appealed to the Lahore High Court to challenge the RLNG’s pricing decisions.

In the last hearing, the Lahore High Court finally decided to uphold the SNGP’s appeal of not to downgrade the UFG for RLNG Supply.

The following two tabs change content below.


Please enter your comment!
Please enter your name here