SNGPL, SSGCL losses to surpass Rs 16.5 billion: OGRA

Oil and Gas Regulatory Authority (OGRA) fears that the state owned companies SNGPL, SSGCL theft losses may exceed from Rs 16.5 billion during current fiscal year.
Oil and Gas regulatory Authority (OGRA) Chairman Saeed Ahmed Khan stated this during a press conference here on Friday. He said that authority has approved 4.5% unaccounted for Gas (UFG) for gas companies however companies have failed to restrict themselves in this limit and exceeded from it. He said during the year 2009-10 gas losses of Sui Northern Gas Company Limited (SNGPL) were reported at Rs 7.1 billion while at the system of Sui Southern Gas Company Limited (SSGCL) these losses were Rs 2.4 billion.
During 2010-11 gas theft losses were 9.8 billion where theft losses at the system of SNGPL were Rs 6.3 billion while for SSGCL these were 3.5 billion rupees. The chairman said that for the current year these losses had been reported as for SNGPL these losses were 14.2 billion rupees while for SSGCL these losses were 2.3 billion. He said that OGRA was working as a regulatory body and followed the guidelines of the ministry of petroleum and natural resources. He said that so far OGRA had not received any guidelines from the ministry over much touted CNG prices however he said that OGRA would solve the CNG price issue before Dec 17.
He said that regulatory body has always followed the directions of Supreme Court and government guidelines that were not contrary to the ordinance of the body. Answering a question the chairman said that OGRA had asked CNG association to give details of their accounts so that it would be easy for OGRA to determine CNG price that would be acceptable for CNG association. To another query, the chairman said that OGRA can not allow gas utilities to exceed from the fixed UFG ratio and they will have to manage it and would have to proceed according to law. Saeed Khan told the media men that OGRA has awarded penalties to SNGPL and SSGCL for violation of set condition of license. He told 0.525million penalty awarded to SNGPL and SSGCL.