Regulatory Regime comprises of:
- The Companies Act 2017.
- Such other Rules and Regulations which the Securities and Exchange Commission of Pakistan (SECP) may prescribe.
- Listing Regulations of all the Stock Exchanges i.e. Pakistan, Lahore and Islamabad.
- Public Sector Companies (Corporate Governance) Rules 2013 & Code of Corporate Governance 2012.
- Oil & Gas Regulatory Authority Ordinance (XVII of 2002) dated 28th March 2002.
- Natural Gas Regulatory Authority (Licensing) Rules 2002 dated 26th February 2002.
- Natural Gas Tariff Rules 2002 (Draft – 5 July 2002).
- Such other Rules and Regulations which the Oil & Gas Regulatory Authority (OGRA) may prescribe.
- Public Procurement Regulatory Authority (PPRA) Ordinance, 2002.
Under the existing pricing and regulatory regimes, following operating conditions have been laid down:
- Allocation of gas from different sources is made by GOP while the wellhead prices are fixed by the OGRA per Petroleum Concession Agreements/contracts.
- Consumer selling price including sales to major consumers (i.e. power, fertilizers etc) are notified by the GOP/OGRA.
- SNGPL is guaranteed a rate of return @ 17.5% on its net fixed assets in operation (ROA) for meeting financial charges, taxation and a reasonable return to the shareholders.
- The prescribed price i.e. the price which the company is allowed to retain out of consumers selling price to meet the covenanted rate of return, is determined by OGRA.