Home »Top Stories » Wellhead gas prices up to 35 percent for 23 fields from July 1

  • News Desk
  • Sep 26th, 2018
  • Comments Off on Wellhead gas prices up to 35 percent for 23 fields from July 1
The Oil and Gas Regulatory Authority (Ogra) has increased wellhead gas prices up to 35 percent for 23 fields with effect from July 1, 2018, a notification said. On the basis of revised wellhead rates, the gas utilities including Sui Southern Gas (SSGC) and Sui Northern Gas (SNGP) would file requests for increase in consumer tariff that would come into force on December 31, 2018, the sources said.

According to the notification, the highest 35 percent increase has been allowed to Mari Field to Rs 189.16/mmbtu from Rs141.15 (Rs 48.01)/mmbtu. This has been attributable to revision of Petroleum Policy 2012 to incentivize gas production.

The Privatization Commi-ssion (PC) had received expression of interests (EoIs) for appointment of financial advisory consortium (FAC) for divestment of the government of Pakistan held shares in Mari Petroleum Company Limited (MPCL). In response to the early request of the PC for expression of interest (EoI), only the Credit Suisse-led consortium submitted technical and financial bids.

The jump of 11 percent has been allowed to Loti Gas Field. Its upward revised rates range from Rs 152.99/mmbtu to Rs 168.28/mmbtu. The wellhead rates of the field were increased by Rs15.29/mmbtu.

Another jump of 10 percent has been allowed to Meyal & Dhulian Gas Fields. Its revised rates range from Rs 143.16/mmbtu to Rs 157.46/mmbtu. The wellhead rates of the field were increased bt Rs14.3/mmbtu. Daru Gas Field has increased to Rs 157.46/mmbtu from Rs 143.16/mmbtu, up by 10 percent.

Under the gas sales and purchase agreements with the different exploration and development companies, the payments to the majority producers are made by the government in foreign exchange while others are paid in Pakistani currency.

Among other notable fields, rates of Dhodak were raised 10 percent to Rs 357.8/mmbtu. All the revised wellhead rates would go up with retrospective effect from July 1, 2018.

Copyright Business Recorder, 2018


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