OGRA jacks wellhead gas price up to 34.9pc for Jan-July

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has increased wellhead gas price up to 34.9 percent for 22 gas fields with effect from January 2019.

On the basis of revised wellhead prices, gas utilities ie Sui Southern Gas Company (SSGC) and Sui Northern Gas Company have already filed a request to OGRA.

The SNGPL has sought an average increase in prescribed prices of gas to Punjab and Khyber Pakhtunkhwa of Rs106.54/mmbtu to RsRs698.21/mmbtu for the next financial year. SSGC that feeds Sindh and Balochistan has also sought an increase of Rs722.51/mmbtu to Rs1,223.70/mmbtu effective from July 1, 2019.

OGRA would hold a public hearing in SSGC case in Karachi on April 8 while in Quetta on April 10. In the case of SNGPL, OGRA would hold public hearings in Peshawar on April 11 and in Lahore on April 15.

According to the OGRA notification, highest 34.905 percent increase has been given to Sari Hundi gas field in Sindh, the wellhead prices have been increased for its eight slabs. Under this field, for gas production up to 30mmmbtu/day, the wellhead price has been notified at Rs864.92/mmbtu/day.

Of these eight slabs, the highest production slabs greater than 150 MMBtu/day has been determined at Rs508.78/mmbtu. Besides, 14.27 percent increase has been given to Loti gas field in Balochistan, the wellhead price of which was increased to Rs192.3 from Rs168.28/mmbtu.

Qadirpur gas field in Sindh was also increased by 14.27 percent to Rs418.65/mmbtu. Price of gas from Ratana gas field, located 130km South-West of Islamabad, was enhanced by 14.24 percent to Rs552.841/mmbtu.

Wellhead price for Dhodak field in Punjab was increased by 14.20 percent to Rs408.95/mmbtu from earlier Rs357.87/mmbtu. Wellhead price for Zamzama SSGC gas field in Dadu, Sindh has been increased by 5.88 percent to $3.537/mmbtu from earlier $3.3408/mmbtu. Zamzama SNGPL field has also been increased by 5.88 percent to 3.5399/mmbtu from earlier 3.3433/mmbtu.

Zamzama Wapda/Guddu wellhead price has been increasing by 5.81 percent to $3.5809/mmbtu against earlier $3.3838 per MMBtu.

Another field Zamzama SSGC phase-II’s gas was also jacked up by 5.73 percent from $3.4308 to $3.6274/mmbtu. However, for Uch gas field in Balochistan, the wellhead price has been kept unchanged at $3.9223/mmbtu.

For Soghri field in district Jhand in Punjab, the price has been increased by 3.91 percent to $5.8793/mmbtu. Both Sohrab deep field and Stuart field have been sanctioned increase of 3.91 percent to $5.3450/mmbtu.

Tolanj X-1 and Makori East gas fields in Thal block have been given an increase of 1.798 percent, now $3.6622/mmbtu.

Price of gas from Kadanwari gas field, located in the middle Indus basin, Sindh, has been kept unchanged.

For Ali-1 field, the price has been increased by 0.15 percent to $2.6472/mmbtu, Bhit gas field in Sindh wellhead price has been jacked up by 5.73 percent to $3.8961/mmbtu.

Kamal North gas field and Kausar deep field both have been given increased 0.15 percent to $2.6472/mmbtu each.

For Rehman gas field in Dadu, Sindh, the wellhead price has been increased by 2.84 percent to 6.2582/mmbtu for the production of natural gas up to 8.751 million cubic feet of gas per day (mmcfd), while for production over 8.751 mmcfd, the wellhead price has been increased by 2.87 percent to $5.8409/mmbtu.

For Rzq-I well in the same area of Dadu, the wellhead price has been increased by 2.87 percent to $5.8409/mmbtu.

Meanwhile, the government has also increased re-gasified liquefied natural gas (RLNG) price by 2.635 percent for both the state-run gas distribution companies for April.

Ogra fixed the new price for the consumers of SNGPL at $10.5758/mmbtu and for SSGC at $10.5246/mmbtu.

In March, the RLNG prices were reduced by 2.87 percent for SNGPL and 5.77 percent for SSGC.

For March, the price for SNGPL and SSGC were $10.3042/mmbtu and $10.2543/mmbtu, respectively.

The price of RLNG was pegged with the crude oil prices, and it was expected that due to the increase in the international oil prices, the local consumers of RLNG would have to bear a price hike.

These new weighted average sale prices of RLNG have been computed, based on the 10 cargoes imported during the month, of which six were imported by PSO and four by Pakistan LNG Limited.