Sui Northern Gas Pipelines Limited has clarified a court ruling linked to an old Gas pricing dispute. The company said the decision has no financial impact on its operations or future earnings.
The Sui Northern Gas Pipelines Limited issued the clarification after a judgment by the Lahore High Court. The case was related to a Cost Equalization Adjustment (CEA) matter in the Gas sector.
The company explained that the dispute involved historical Gas payments. These payments were made to Sui Southern Gas Company Limited under a government-approved mechanism.
The system was introduced in 2003 to ensure uniform Gas prices across the country. It was approved by the Economic Coordination Committee (ECC) and the Oil and Gas Regulatory Authority (OGRA). The goal was to balance regional differences in Gas pricing.
SNGP stated that all related expenses were already recorded in its financial accounts. These amounts were also included in tariff determinations for the relevant periods. Therefore, the court ruling does not create any new financial liability.
The Lahore High Court ruled that the disputed expenditure qualifies as legitimate business cost. This decision effectively resolved the long-standing Gas dispute in favor of the company.
The company emphasized that the ruling does not affect its profitability outlook. It also does not create any additional burden related to Gas operations or financial adjustments.
SNGP further clarified that the outcome is financially neutral. It does not impact shareholder value or introduce price-sensitive concerns for the market.
Officials said the clarification was issued to ensure transparency. It also aims to prevent confusion among investors following media reports.
The company added that its Gas supply operations will continue without interruption. It remains committed to regulatory compliance and stable financial reporting.
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Overall, the ruling brings closure to a long-standing legal issue in the Gas sector. SNGP said it will continue focusing on efficient and reliable Gas distribution across its service areas.
