Notified Rule Proposed Amendments Clause NO

OGRA NOTIFIED TPA RULES, 2012
AMENDMENTS PROPOSED (SECOND DRAFT FOR REVIEW)
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NO.
NOTIFIED RULE
PROPOSED AMENDMENTS
NOTIFICATION
Islamabad, the, 5th April, 2012
S.R.O 410 (I)/2012. In exercise of the powers S.R.O./2015. In exercise of the powers
conferred by Section 41 of the Oil and Gas conferred by Section 41 of the OilAND Gas
Regulatory Authority Ordinance, 2002, (XVII of Regulatory Authority Ordinance,2002(XVII of
2002), the Oil and Gas Regulatory Authority, 2002), the Oil and Gas Regulatory Authority,
with the approval of the Federal Government, is with the approval of the Federal Government,is
pleased to make the following rules, namely:
pleased to make the following amendments in
the OGRA Natural Gas ( Regulated Third
Party)Rules,2012,namely:-
1
(1)
(2)
SHORT Title, commencement, extent and

applicability.
These rules shall be called the OGRA Natural
Gas (Regulated Third Party Access) Rules, 2012.
They shall come into force at once.
Legend:
Underlined: Proposed Amendments
Strike Through: Proposed Deletions
Page 1 of 132
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(3)
a
b
NOTIFIED RULE
PROPOSED AMENDMENTS
These Rules are applicable to a person who is

operating:
natural gas pipelines transmission network
operating as common carrier;
natural gas pipelines distribution network
beyond the exclusivity period of marketing
within its authorized area by the Authority as
common carrier ; and
natural gas transmission and distribution

pipeline networks, both existing and new gas
pipeline transportation system, which are under
the jurisdiction of the Authority
(4)
These Rules shall extend the whole of Pakistan.
Legend:
Page 2 of 132
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2
(1)
i
NOTIFIED RULE
PROPOSED AMENDMENTS
Definitions:
In these rules unless there is anything
repugnant in the subject or context,access
arrangement
means
an
access arrangement means an agreement
agreement(s) between transporter and shipper between transporter and shipper or between
or between transporter and other connected transporter and connected system operator as
system operator as approved by the Authority; approved by the Authority;
ii
"AHA" means a homogenous area which means

a part of the gas pipeline transportation system
within which the same quality of gas is received
or delivered, over a specified time period;
iii
"available capacity means the difference

between the technical capacity and contracted
capacity;
iv
base conditions means volume and gross

calorific value which shall be measured at base
conditions of 14,65 PSIA and 60 degree
Fahrenheit, however, calorific value calculation
shall be as defined in Gas Processing
Association (GPA), American Society for Testing
and Materials (ASTM) or ISO relevant standard;
capacity allocation means maximum daily capacity allocation means maximum daily
quantity (MO) in MMCFD of gas which can be quantity in MMCFD of gas which can be
delivered at a certain entry point and exit point, delivered at a certain entry point and exit
in
accordance
with
relevant
access point, in accordance with relevant access
arrangement;
arrangement;
Legend:
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vi
common carrier means a facility declared to

be available by transporter to provide service to
all shippers without discrimination;
vii
connected system means a natural gas

transmission or distribution system or a natural
gas production facility or an LNG terminal or a
natural
gas
storage
facility
that
is
interconnected with transporters gas pipeline
transportation system;
viii
connected
system
operator
means
operator of any connected system;
contracted capacity means firm capacity contracted capacity means firm capacity
that the transporter committed with gas that the transporter committed with gas
producers, its consumers, aggregated volumes producers, its consumers, aggregated volumes
contracted
with
other
shippers
for contracted
with
other
shippers
for
transportation
and/or
connected
system transportation at the time of capacity
operator at the time of capacity declaration in declaration in volumetric terms on daily,
volumetric terms on daily, monthly or yearly monthly, yearly or longer term basis under an
basis under an access arrangement;
access arrangement;
ix
custody transfer measuring facility

means a facility which measures the quantity
(in terms of volume and energy) and quality of
natural gas for transfer of custody from one
shipper to transporter;
xi
dispute means any dispute or difference

arising between the
parties to the access
arrangement made under these rules;
Legend:
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xi(a)
PROPOSED AMENDMENTS
"Energy equivalence volume" means any such
volume which the transporter will deliver to
the shipper at the exit point in order to meet
the energy equivalence of the volume input at
the entry point;
xii
entry
point
means
the
flange
at entry
point
means the flange at
downstream of the meter at which the gas downstream of the meter at which the gas
delivered by shipper or by connected system delivered by shipper or by connected system
operator, is injected into the gas pipeline operator, is injected into the gas pipeline
transportation system of the transporter;
transportation system of the transporter. Or
into the interconnection pipeline of the
connected system operator, whichever is
applicable;
xiii
exit point means the flange at downstream

of the
meter at which the gas is withdrawn
from the gas pipeline transportation system of
the transporter;
xiv
"firm basis" means the commitment made by

the shipper to avail the capacity and firm
commitment made by the transporter to
transport the gas on behalf of shipper, default in
fulfilling of which may entail the penalties as
agreed in the access arrangement;
Legend:
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xv
firm service means a fixed obligation where

the transporter is obligated to provide a
specified capacity without interruption;
xvi
gas pipeline transportation system

means all
transmission and distribution
pipelines, spur
pipelines and associated
facilities
downstream
of
gas
producer's
processing plant or shipper's delivery point,
regasification terminal which are used for
transportation of natural gas from one point to
another, but shall not include the gas
processing plant and re-gasification terminal
pipeline within the battery limit of isolation
valves of the plant or terminal;
xvii
interconnection
and
operation interconnection
and
operation
arrangement means the agreement entered arrangement means the agreement entered
into between the transporter and any other into between the transporter and any other
transporters or LNG developer or LNG buyer for transporters or LNG developer or LNG buyer or
the purposes of interconnecting two systems connected system operator for the purposes of
and arranging the operational relations between interconnecting two systems and arranging the
the two, as approved by the Authority;
operational relations between the two, as
approved by the Authority.
xviii
interruptible basis means gas service

wherein the transporter shall transport the gas
as and when the capacity is available in the gas
pipeline transportation system on reasonable
endeavor basis;
Legend:
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xix
line pack (LP) means the volume of gas in a

segment of gas pipeline transportation systems
at a certain point of time at a defined gas
specification, temperature and pressure;
xx
LNG buyer means a Government designated

buyer, gas utility company, any consumer or
supplier of LNG, who import LNG from any other
country or purchase LNG from any other
supplier under an LNG sale purchase agreement
and enters into a tolling agreement with LNG
Terminal owner or operator for the provision of
LNG receiving, storage and regasification
services at its LNG terminal;
xxi
LNG developer means a private or public

sector party, joint venture or consortium which
is responsible for purchasing LNG supplies,
transporting LNG to its import terminal
(comprising
receiving,
storage
and
regasification facilities) and supplying RLNG to the
domestic market
under a RLNG sales and
purchase agreement or for its own use;
xxii
"LNG terminal means facilities for receiving,

storage and regasification of LNG;
Legend:
PROPOSED AMENDMENTS
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xxiii
LNG terminal owner or operator means a LNG terminal owner or operator LNG
person developing the LNG import terminal for TO/O means a person developing the LNG
the provision of LNG receiving, storage and re- import terminal for the provision of LNG
gasification services at its terminal on a tolling receiving, storage and regasification services
basis;
at its terminal on a tolling basis.
xxiv
load
management
means
deliberate
actions sponsored by a transporter to reduce
peak demands, or curtail gas supply of its own
consumer whose supplies are on interruptible or
on as and when available basis, or to improve
system operating efficiency;
xxv
"natural gas" means

hydrocarbons
or
mixture of hydrocarbons and other gases
which
at
60
degrees
Fahrenheit and
atmospheric pressure are in the gaseous state
(including gas from gas wells, gas produced
with crude oil and residue gas and products
resulting from the processing of gas) consisting
primarily of methane, together with any other
substance produced with such hydrocarbons;
xxv(a)
Natural gas seller means a person who is
involved in sale of natural gas to a retail
customer of natural gas;
Legend:
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xxvi
NOTIFIED RULE
PROPOSED AMENDMENTS
"negative Imbalance" means the imbalance "negative Imbalance" means the imbalance
created by the shipper if the shipper off-takes created by the shipper if the shipper off-takes
more quantity of gas from the gas pipeline more quantity of gas from the gas pipeline
transportation system than injected into it. transportation system than injected into it.
Shipper shall be allowed a negative imbalance Shipper shall be allowed a mutually agreed
of one percentage of contracted capacity as negative imbalance within the access
tolerance limit. any negative imbalance over the arrangement of one percentage of contracted
tolerance limit shall be liable to charges as capacity as tolerance limit. Any negative
agreed in access arrangement, in addition to imbalance over the tolerance limit shall be
transportation charges;
liable to charges as agreed in access
arrangement, in addition to transportation
charges. The total negative imbalances over
the agreed tolerance limit shall be considered
at the end of each invoicing period and
charged to relevant party accordingly;
xxvi(a)
natural gas specification mean the

natural gas quality as prescribed by the
Authority per Schedule III (A);
xxvi(b)
natural gas reseller means a person who

purchases natural gas from natural gas
seller for the purpose of reselling to the
natural gas end buyer who consumes it in
its facilities;
Legend:
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xxvii
nomination means notification process

between the shippers and the transporter to
schedule shipper daily delivery and off-take
quantities relating to each entry point and exit
point, agreed in the access arrangement;
xxviii
operating pressure means the pressure

corresponding to a particular flow rate at which
a pipeline segment is operated;
xxix
"Ordinance" means Oil and Gas Regulatory

Ordinance, 2002 (XVII of 2002);
"party" include
transporter,
shipper, "party" include
transporter,
shipper,
connected system operator who has entered connected system operator who has entered
into an access arrangement under the rules;
into an access arrangement
or the
interconnection and operation arrangement
under the rules;
xxx
Legend:
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xxxi
"positive Imbalance" means the imbalance "positive Imbalance" means the imbalance
created by the shipper if he off-takes less created by the shipper if he off-takes less
quantity of gas from the gas pipeline quantity of gas from the gas pipeline
transportation system than injected into it. transportation system than injected into it.
Shipper shall be allowed a positive imbalance of Shipper shall be allowed a mutually agreed
two percentage of contracted capacity as positive imbalance within the access
tolerance limit and any positive imbalance over arrangement of two percentage of contracted
the tolerance limit shall be liable to charges as capacity as tolerance limit. Any positive
agreed in access arrangement, in addition to imbalance over the tolerance limit shall be
transportation charges;
liable to charges as agreed in access
arrangement, in addition to transportation
charges. The total positive imbalances over the
agreed tolerance limit shall be considered at
the end of each invoicing period and charged
to relevant party accordingly;
xxxii
re-gasified liquefied natural gas (RLNG)

means the natural gas obtained after
gasification of liquefied natural gas (LNG)
conforming to RLNG specifications as set out in
Schedule- III;
xxxiii
RLNG end buyer means person who have

contract with LNG developer, RLNG seller or
LNG buyer or RLNG reseller to purchase RLNG
and consume it in its facilities;
Legend:
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xxxiv
RLNG reseller means person who purchase

RLNG from the RLNG seller for the purpose of
reselling to RLNG end buyers;
xxxv
RLNG seller means LNG developer, LNG

buyer who sells RLNG;
xxxvi
RLNG specification means RLNG supplied

by the shipper and (or) connected system
operator, and delivered to transporters at the
entry point for transportation, which conforms
to the specification as agreed in the access
arrangement within the limits set out in
Schedule-III;
Legend:
PROPOSED AMENDMENTS
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PROPOSED AMENDMENTS
xxxvii
shipper means a person that has an access shipper means a person that has an access
arrangement with the transporter to utilize the arrangement with the transporter to utilize the
natural gas pipeline transportation system natural gas pipeline transportation system
capacity. for transportation of natural gas capacity, for transportation of natural gas
between an agreed entry point and agreed exit between an agreed entry point and agreed exit
points, including but not limited to, producer of points, including but not limited to, producer of
natural gas, LNG developer, LNG buyer, RLNG natural gas, LNG developer, LNG buyer,
seller (as per integrated project or unbundled Connected System Operator, RLNG seller (as
project structure), RLNG reseller and RLNG end per integrated project or unbundled project
buyer or each singular natural gas consumer;
structure), RLNG reseller and RLNG end buyer,
natural gas seller, natural gas reseller, retail
consumers of natural gas or each singular gas
consumers;
xxxviii
spur pipeline is a pipeline, which emanates

from another pipeline for transportation of gas;
xxxix
system integrity means any situation in

respect of a gas pipeline transportation system
in which the pressure and the quality of natural
gas remains within the minimum and maximum
limits laid down by the transporter so that the
transportation of natural gas is guaranteed in
accordance with the applicable technical
standards;
Legend:
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xl
system use gas (SUG) means the quantity

of gas used by the transporter for the operation
and maintenance attributable to the gas
pipeline transportation system related to the
access arrangement;
xli
technical capacity means the maximum

transportation capacity of a segment of gas
pipeline transportation system
taking into
account
the system integrity and the
operational requirements;
xlii
transportation tariff means the charges

payable by shipper to transporter, as approved
by the Authority from time to time, for
transporting unit volume of gas including fixed
charges under the access arrangement;
Legend:
PROPOSED AMENDMENTS
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PROPOSED AMENDMENTS
xliii
transportation loss (TL) means the transportation loss (TL) means the
quantity of gas, which is unaccounted for by a quantity of gas, which is unaccounted for by a
reasonable and prudent operator including but reasonable and prudent operator including but
not limited to measurement uncertainty, blow not limited to measurement uncertainty, blow
downs, venting or releases during regular downs, venting or releases during regular
operation and maintenance of the gas pipeline operation and maintenance of the gas pipeline
transportation system used as common carrier. transportation system used as common carrier.
The volume of such gas would be calculated on The volume of such gas would be calculated on
the basis of past three years historical data of the basis of moving average of past 3 years
actual losses in defined transmission pipeline unaccounted for gas allowed by the Authority
network and distribution or supply main network in its revenue requirement determinations
or segment. In case the historical data is not under the applicable rules. The transporter and
available the same shall be agreed upon by shipper may also mutually agree such
transporter and shipper through the access volume,which shall not be less than the volume
arrangement and shall be approved by the allowed by the Authority.
Authority;
xliv
transporter means a person holding valid

licenses
issued
by
the
Authority,
for
transportation of natural gas through a gas
pipeline transportation system; and
Legend:
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xlv
unit of measurement means unit

of
measurement of quantity of gas shall be in
Million British Thermal Units (MMBTU) when
quantity is measured in energy terms and shall
be in Mulley (thousand) Standard Cubic Feet
(MSCF) when quantity is measured in terms of
volume at 14.65 PSIA base pressure and 60
degree Fahrenheit base temperature;
(2)
The words and expressions used but not defined

hereunder shall have the meanings as assigned
to them in the Ordinance.
Legend:
PROPOSED AMENDMENTS
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PROPOSED AMENDMENTS
3
(1)
Scope of Services:
The transportation service consists of taking The transportation service consists of taking
delivery of the gas made available by a shipper, delivery of the gas made available by a
at one or more entry points along the gas shipper, at one or more entry points along the
pipeline transportation system and delivering an gas pipeline transportation system and
equivalent quantity of gas subject to adjustment delivering an energy equivalent quantity of gas
on account of System Use Gas (SUG), subject to adjustment on account of System
Transportation Loss (TL) and Line Pack (LP) at Use Gas (SUG), Transportation Loss (TL) and
one or more exit points in accordance with the Line Pack (LP) at one or more exit points in
terms and conditions laid down in the access accordance with the terms and conditions laid
arrangement
between
the
shipper
and down in the access arrangement between the
transporter as approved by the Authority.
shipper and transporter as approved by the
Authority.
(2)
The Shippers shall have access to the gas

pipeline transportation system for each singular
natural gas consumer or RLNG end buyer. In
case of distribution system the access shall be
allowed when such system is opened for
competition beyond the exclusivity period of
marketing allowed to the person under the
Natural Gas Regulatory Authority (Licensing)
Rules 2002.
Facilities on Gas Transportation Pipeline

System:
Legend:
Page 17 of 132
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(1)
NOTIFIED RULE
PROPOSED AMENDMENTS
Shipper or connected system operator shall

arrange to deliver gas at entry point on the gas
pipeline transportation system and shall provide
all facilities including measurement equipment
required for transfer of custody and delivery of
gas to the transporter and such facilities shall
be maintained and operated by the shipper. The
title of gas delivered at the entry point shall
remain vested in the shipper or connected
system operator, as the case may be till gas
reaches exit point.
Legend:
Page 18 of 132
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PROPOSED AMENDMENTS
(2)
Tie-in of shippers or connected system

operators onshore facility or network to the
transporter's onshore gas entry point shall be
executed by the transporter and shall be part of
the transporters tariff computation under the
rules as agreed under the access arrangement.
(3)
Shipper or his authorized nominee shall own, Shipper or connected system operator or his
operate and maintain facilities upstream of authorized nominee shall own operate and
transporters onshore entry point at his own maintain facilities upstream of transporters
cost and risk.
onshore entry point at his own cost and risk.
(4)
Transporter shall arrange to deliver gas at its

exit point to shipper or the connected system
operator, natural gas consumer and RLNG endbuyer, as the case may be, and shall provide
facilities including measurement equipments at
exit point for transfer of custody and delivery of
gas unless otherwise agreed amongst them.
(5)
Transporter shall own, operate and maintain the

exit point facilities including gas measurement
facilities at its own cost and risk.
Legend:
Page 19 of 132
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(6)
Tie-in of transporter's facility at exit point to the

shippers as connected system operators
facility shall be executed by the transporter at
his cost and shall form part of the tariff
computation of transporters.
(7)
The shipper, connected system operator,

natural gas consumer or RLNG buyer, shall
provide space, free access and cooperate with
the
transporter
in
installing,
operating,
maintaining and modifying any specific exit
point facilities when such exit point facilities are
provided in its premises, as the case may be.
Legend:
PROPOSED AMENDMENTS
Page 20 of 132
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(8)
NOTIFIED RULE
PROPOSED AMENDMENTS
The transporter or shipper or connected system

operator or natural gas consumer or RLNG end
buyer , as the case may be, at its option and
cost provide check meter, conforming to the
standard and specifications specified by the
Authority, at the entry or exit point, on gas
pipeline transportation system however, in case
of variation in the readings the transporter's
meter shall be taken for accounting purpose
subject to conformity assessment as agreed in
the access arrangement.
Legend:
Page 21 of 132
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Pipeline Capacity:
(1)
The transporter shall declare, in MMCFD, the

section wise technical, contracted and available
capacity of the gas pipeline transportation
system on its website on the commencement
of these rules and on the 1st of each calendar
month basis in the form specified in Schedule-I
and shall send this information to the Authority.
Such declaration shall also include the technical
and available capacity at each segment-wise
entry and exit point.
(2)
The available capacity shall be approved by the deleterule 5(2)

Authority.
The capacity so approved by the Authority shall The capacity so declared by the transporter
be available on common carrier basis as per shall be available on common carrier basis as
these rules and shall be so allocated by the per these rules and shall be so allocated by the
Authority
in
a
transparent
and
non- Authority
in
a
transparent
and
nondiscriminatory manner on first come first discriminatory manner on first come first
served (FCFS) basis, as per Schedule- II.
served (FCFS) basis, as per Schedule- II.
(3)
(4)
The declared available capacity, if varies

materially from actual available capacity the
same may be reworked by the transporter with
the prior approval of Authority, in case the
variation persists for more than thirty calendar
days.
Legend:
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6
(1)
Capacity Extension and Expansion

The capacity extension of existing gas pipeline
transportation system shall be undertaken by
the transporter in compliance with the relevant
provisions of the Ordinance and the applicable
rules. The enhanced capacity shall also be
declared by the transporter as per the
procedure specified above and approved by the
Authority.
(2)
If additional capacity in the gas pipeline

transportation system is not available as per the
requirements of the shipper or connected
system operator, as the case may be, the
transporter at the request of the shipper or
connected system operator may expand
capacity
on
economical
and
technical
considerations, subject to the approval of the
Authority or the shipper or the connected
system operator may construct its own pipeline
subject to grant of license by the Authority.
Legend:
PROPOSED AMENDMENTS
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PROPOSED AMENDMENTS
7
(1)
Maintenance cost and risk

Transporter shall operate and maintain its own
gas pipeline transportation system between
entry and exit points including Custody Transfer
Gas Measuring Facility at its own cost and risk.
Connected system operator or any person
designated by him shall operate and maintain
its connected system and relevant segment of
interconnection pipelines to the gas pipeline
transportation system at its own cost and risk.
(2)
Transporter may operate and maintain the entry Transporter may operate and maintain the
and exit point facilities and interconnection entry
and
exit
point
facilities
and
pipelines at the owners cost and risk. Ownership interconnection pipelines at the owners cost
of such facilities may belong to shipper or and risk. Ownership of such facilities may
connected system operator or transporter, as belong to shipper or connected system
the case may be, and is to be agreed in the operator or transporter, as the case may be,
access arrangement or in the interconnection and is to be agreed in the access arrangement
and operation agreement.
or in the interconnection and operation
arrangement.
Legend:
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8
(1)
RLNG Specification:
Acceptable RLNG specification range at the
entry point shall be as agreed between the
shipper and the transporter under the access
agreement which shall be within the limits as
given in Schedule-III.
(2)
RLNG delivered by the shipper or by the

connected system operator to the transporter at
the entry point must comply with the
specifications, as set out in sub rule (1) or as
agreed between transporter and shipper.
(3)
Transporter may deliver commingled gas of

specified quality as agreed under access
arrangement, at one or more exit point.
Requests from Prospective LNG developer

or LNG buyer:
Transporter and connected system operator
shall enter into a Framework Agreement for
Access Arrangement and send it to the
Authority for approval within two weeks after
capacity allocation by the Authority.
(1)
Legend:
PROPOSED AMENDMENTS
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(2)
The transporter shall then negotiate and enter

into
the
interconnection
and
operation
arrangement with the connected system
operator. The transporter shall also negotiate
and initial the access arrangement with LNG
developer or LNG buyer, as the case may be,
and the same shall inter alia cover the swap
operations, creation of necessary additional
capacity, in a tripartite agreement and the same
shall be approved by the Authority.
(3)
The LNG developer or LNG buyer shall submit

application to the Authority for capacity
allocation and the Authority shall allocate the
capacity as laid down under the rule 12 and
sub-rule (1) of rule 13.
Legend:
PROPOSED AMENDMENTS
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10
Specific
requests
from
prospective
shippers other than LNG developer or LNG
buyer:
(1)
Each application received by a transporter for

access shall be processed in accordance with
the procedures set out herein below,
Capacity may be applied on firm basis or on

interruptible basis along with the volume, gas
quality range, the period for which it is required
and the entry and exit points;
upon receipt of a request for access from a

shipper, the transporter shall, within a
reasonable time but not exceeding seven
working days after receiving the request from
the shipper, respond to the shipper,
(i)
confirming that spare capacity exists to satisfy

the request and specifying the charges and
terms and conditions upon which it shall make
the service available;
(ii)
advising that spare capacity does not exist to

satisfy the request;
advising that investigations are required to be
undertaken prior to responding to the request.
Such time period shall not exceed twenty
working days; or
(iii)
Legend:
PROPOSED AMENDMENTS
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(iv)
advising that it is not technically or

operationally feasible to provide access subject
to intimation to the Authority.
(2)
Shipper shall convey its acceptance within

twenty days of its acceptance of terms sheet or
state its desire to negotiate on terms. After
acceptance of the term sheet, the transporter
and shipper shall negotiate and initial the
access arrangement and send the Authority for
approval.
Legend:
PROPOSED AMENDMENTS
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11
(1)
Capacity allocation:
Capacity on firm basis shall be made available
for a minimum of one year. However, the
maximum period for capacity allocation shall be
as agreed in the access arrangement between
the transporter and shipper.
(2)
Capacity on interruptible basis may however, be

offered for one day or more by the transporter
to all shippers, by way of posting on his website
on daily basis. In case when there are more than
one shipper, they shall hold capacity at all entry
and exit points.
(3)
The capacity allocation shall be on point to point

basis in volumetric terms. The Authority shall
allocate available capacity, in the gas pipeline
transportation system, on first come first served
basis, as per the criteria specified in ScheduleII.
Legend:
PROPOSED AMENDMENTS
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12
(1)
(2)
NOTIFIED RULE
PROPOSED AMENDMENTS
Obligations of the party to whom capacity

is allocated.
The party to whom the capacity is allocated
shall pay to the Authority the prescribed fee
along with the request for capacity allocation.
The capacity allocated to a person shall not be
allowed by way of sale, assignment, transfer or
surrender to any person during the period of
three years from the date of its approval. After
expiry of the aforesaid period the shipper may,
with the prior approval of the Authority, assign
its allocated capacity to another shipper. The
said assignment shall however, be subject to
the consent of the transporter and in line with
the
terms
and
conditions
of
access
arrangement.
Legend:
Page 30 of 132
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NO.
(3)
NOTIFIED RULE
PROPOSED AMENDMENTS
The transporter shall be paid for transportation The transporter shall be paid for transportation
charges for the contracted capacity in terms of charges for the contracted capacity in terms of
volume at the entry point and shall account for volume at the entry point and shall account for
this gas in terms of equivalent energy value at this gas in terms of equivalent energy value at
exit point irrespective of volume.
exit point irrespective of volume. Any volume
of gas for energy equivalence at the exit point
shall be on transporter account and such
make-up volume shall be allowed as
adjustment by treating it as deemed delivery /
sale by the Authority for computing transporter
unaccounted for gas under the applicable rules
/ policy guidelines, as the case may be;
Legend:
Page 31 of 132
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NO.
NOTIFIED RULE
PROPOSED AMENDMENTS
(4)
The available capacity shall be contracted on a The available capacity shall be allocated on a
use it or lose it basis. In case the contracted use it or lose it basis. In case the contracted
capacity utilization is below seventy percent in capacity utilization is below seventy percent in
two calendar years, the unutilized part of the two calendar years, the unutilized part of the
contracted capacity may stand cancelled. The contracted capacity may stand cancelled. The
relevant terms and conditions in the existing relevant terms and conditions in the existing
access arrangement shall be modified and access arrangement shall be modified and
approved by the Authority keeping in view the approved by the Authority keeping in view the
past performance with respect to the capacity past performance with respect to the capacity
utilization.
utilization.
(5)
The allocated capacity shall be through a The allocated capacity shall be through a
contract between shipper and transporter under contract between shipper/connected system
access arrangement in form of maximum daily operator and transporter under access
quantity.
arrangement in form of maximum daily
quantity.
Legend:
Page 32 of 132
CLAUSE
NO.
NOTIFIED RULE
(6)
The transporter shall submit each access

arrangement within twenty calendar days along
with the prescribed fee for approval of the
Authority under these rules. The Authority shall
decide the issue within thirty calendar days.
(7)
After allocation of available capacity by the

Authority to a shipper, the signing of access
arrangement between the parties shall not
exceed one hundred and twenty days calendar
days from the date of such allocation.
13
Procedure for connections at existing and

new entry and exit points:
The transporter shall publish a standardized
term sheet of transportation agreement as part
of its access arrangement for considering the
requests for new entry and exit points and
person seeking access to existing entry and exit
point on the gas pipeline transportation system
shall use the same to submit the request to the
transporter in writing.
(1)
(2)
PROPOSED AMENDMENTS
The transporter shall respond to the request

made under this rule within ten calendar days.
Legend:
Page 33 of 132
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NO.
NOTIFIED RULE
14
(1)
Nominations:
A shipper shall intimate to the transporter about
the quantities that it intends to deliver at a
particular entry point and off-take at a particular
exit point from the gas pipeline transportation
system on weekly basis on every Monday at
0800 hours PST in respect of the week starting
from immediate following Monday.
(2)
The nomination shall contain the expected gas

flow details of daily nominated quantities as per
the access arrangements agreed upon between
the shipper and the transporter.
15
Transportation Tariff:
The transporter shall submit the transportation
tariff application to the Authority for approval
along with the prescribed fee.
PROPOSED AMENDMENTS
The Authority shall approve the transportation

tariff in accordance with the methodology along
with the sample calculation which shall be
specified in Schedule-IV.
Legend:
Page 34 of 132
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NO.
NOTIFIED RULE
16
(1)
System Imbalance and Charges:

The transporter shall be responsible for physical
balance of its gas pipeline transportation
system by maintaining the required pressure for
all segments of the system. The shipper is
responsible for balancing his daily deliveries at
the entry points and daily off-takes from the exit
points.
(2)
Determination of imbalance (positive or

negative) gas quantity between the transporter
and the shipper shall be done on daily basis for
each gas day and the gas imbalance shall be
settled every month as agreed in the access
arrangement.
PROPOSED AMENDMENTS
The account receivable party shall be

compensated for the imbalance gas quantity in
kind, as agreed in the access arrangement.
(3)
(4)
It shall be the responsibility of the shipper to

cure imbalances caused by the shipper in
transporter's gas pipeline transportation system
on day to day basis. In case, the shipper is
unable to cure such imbalances, then, the
transporter shall have the right to adjust daily
nomination to mitigate such imbalances to
ensure safety and system integrity of gas
pipeline transportation system.
Legend:
Page 35 of 132
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NOTIFIED RULE
(5)
Other modalities regarding balancing shall be

addressed in the access arrangement, if
required.
(6)
If connected system operator fulfills the delivery

responsibilities owned to a shipper at the entry
point but the shippers default on exit point
responsibilities owned to the transporter for any
reason what so ever, then in order to secure
continuous flow of gas in the system, such
imbalances shall be settled within two calendar
days between the connected system operator
and the transporter as per inter-connection and
operation arrangements.
Legend:
PROPOSED AMENDMENTS
Page 36 of 132
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17
(1)
(2)
NOTIFIED RULE
PROPOSED AMENDMENTS
Gas, Line Pack and Transportation Losses: System Use Gas, Line Pack and Transportation
Losses:
Quantum of System Use Gas (SUG),Line Pack
(LP) and Transportation Loss (TL) (calculated at
maximum allowable operating pressure of the
pipeline) shall be specified in the access
arrangement. A shipper shall provide the
natural gas for SUG, LP and TL in proportion to
its capacity allocation in the gas pipeline
transportation system.
In case of dedicated pipeline the shipper shall
provide its gas for LP and at the termination of
access
arrangement,
recoverable
volume
equivalent to the related LP shall be delivered to
the shippers customer or compensated as per
access arrangement.
Legend:
Page 37 of 132
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NOTIFIED RULE
18
(1)
Planned Maintenance:
The transporter is required to draw up, inform
and place on its website a maintenance plan for
a defined period identifying those entry and exit
points where gas flows may be restricted due to
maintenance works, the extent of the
restrictions and when they shall occur in
accordance with the terms and conditions of the
access arrangement. The transporter shall
prepare the plan to minimize disruption to
affected
parties
and
may
request
for
information from shippers about their intended
entry and exit flows.
(2)
Dates of maintenance within the plan may be

adjusted on one hundred and twenty calendar
days notice to the affected shippers but the
transporter shall then adhere to the plan.
(3)
The planned maintenance period shall not

exceed twenty calendar days on annual basis or
as per mutual agreement between transporter
and shipper.
19
Operational Planning:
Legend:
PROPOSED AMENDMENTS
Page 38 of 132
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NOTIFIED RULE
PROPOSED AMENDMENTS
(1)
Shipper shall on a periodic basis of at least sixty Shipper shall on a periodic basis of at least
calendar days provide nomination of quantities sixty calendar days provide nomination of
that it desires to transport through the gas quantities that it desires to transport through
pipeline transportation system in line with the the gas pipeline transportation system in line
provisions of rule 6.
with the provisions of rule 5.
(2)
Transporter shall schedule the quantities of gas

for transportation based on the nominations
received.
However, In case the total nominations exceed
available capacity on a day, the transporter
shall schedule the firm quantities on the priority
basis.
(3)
The quantity or volume of gas measured at

entry point shall be attributed to the shippers
and connected system operator.
Such attribution shall be based on a
predetermined methodology as agreed between
the transporter and connected system operator
and shipper.
Legend:
Page 39 of 132
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NO.
NOTIFIED RULE
(4)
The nominated quantity of gas over and above

the contracted capacity that was scheduled by
the transporter as per the nomination received
is termed as authorized overrun quantity, which
shall not exceed five percent of the contracted
capacity. Shipper shall be liable to pay
transportation charge for overrun quantity as
per Schedule-IV.
(5)
Transporter shall allocate quantity of gas to

various shippers and provide an exit point-wise
allocation schedule to each shipper.
20
(1)
Measurement of Gas:
At each entry point, there shall be measurement
equipment necessary to measure the quantity
of gas flown, pressure and temperature. Either
at the entry point or in the AHA before the entry
point, there shall be equipments to measure gas
composition, heating value, H2S content, Water
& hydrocarbon dew point. Values of such
parameters shall be specified in the ScheduleIII.
Legend:
PROPOSED AMENDMENTS
Page 40 of 132
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NO.
(2)
NOTIFIED RULE
PROPOSED AMENDMENTS
For the exit point, the network is divided into a

homogeneous areas and the quality is
continuously measured by gas chromatograph
(GC) at each AHA. Measurement equipments to
measure, throughout the day, the volume of gas
flown, pressure & temperature shall be installed
at the exit point.
However, the total error limit or accuracy of the
measurement equipment shall be as agreed
between the parties through the access
arrangement.
(3)
Verification and calibration shall be carried out,

according to the technical standards specified
by the Authority or as per access arrangements.
(4)
Either Party may install check meters at

requisite points with a precondition that the
same shall not interfere with the measurement
equipment installed by the other party for
custody transfer purpose.
Legend:
Page 41 of 132
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NOTIFIED RULE
PROPOSED AMENDMENTS
21
(1)
Gas Accounting & Reconciliation:

The gas accounting at the entry point shall be in
the energy terms, on daily basis both by the
shipper and the transporter.
(2)
Gas reconciliation, billing & penalty and their

settlement shall be addressed in accordance
with the access arrangement between the
parties.
(3)
The transporter shall be paid for transportation

charges which include capacity charges for the
contracted capacity in terms of volume, at entry
point and commodity charges for volumes
delivered at exit point.
22
Load Management:
RLNG end buyers for whom shipper and Transporter shall not subject shipper gas to any
transporter have entered into an access load management to the extent of access
arrangement shall not be subject to any gas arrangement volumes only.
load management by the transporter to the
extent of access arrangement volumes only.
Legend:
Page 42 of 132
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NOTIFIED RULE
23
Obligations:
(1)
At entry point where the shipper delivers gas

that does not meet the quality as specified in
Schedule-III, the transporter shall have the right
to refuse to accept or to accept with certain
conditions as agreed in the access arrangement
(2)
At the exit point where the transporter delivers

gas that does not meet the quality requirements
under the access arrangement the shipper shall
have the right to refuse to accept deliveries or
to accept deliveries with penalty to the
transporter, as per access arrangement.
Legend:
PROPOSED AMENDMENTS
Page 43 of 132
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NO.
NOTIFIED RULE
24
Emergencies:
In the event of emergencies the transporter
may take necessary measures as agreed by the
shippers and the transporter, or by transporter
and connected system operator in the access
arrangement and interconnection and operation
arrangement on mutually agreed terms, as the
case may be.
25
Information and Confidentiality:

All
documentation,
information,
data,
submissions and comments disclosed or
delivered whether in writing or otherwise by any
person to the transporter, shipper or to any
other party either in connection with or in
consequence of the requirements of these rules
shall be regarded and treated as confidential;
and shall not be disclosed either in full or part of
any or all of the documentation, information,
data, submissions and comments including the
contents and copies thereof in any form except,
with the prior consent of the contracting parties
or unless specifically ordered by any of
competent jurisdiction in Pakistan.
Legend:
PROPOSED AMENDMENTS
Page 44 of 132
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NOTIFIED RULE
PROPOSED AMENDMENTS
26
Fees:
The shipper/transporter shall pay the following The shipper/transporter shall pay the following
fees under the rule sub rule (1) and (6) of rule fees under the rule sub rule (1) and (6) of rule
13 and 16 respectively, namely:
12and 15 respectively, namely:
S/N
1
Fees applicable for: Rupees per mmscfd

Processing of applications for capacity allocation
: 4,000
Approval of access arrangements : 9,000
Determination of transportation tariff : 7,000
2
3
4
Annual determination of transportation tariff at

Rupees 3,500/- per mmscfd
27
(1)
Miscellaneous:
These Rules
shall not have affect on the
agreement signed by existing gas utility
companies i.e. Sui Northern Gas Pipelines
Limited and Sui Southern Gas Company Limited,
prior to coming of these rules.
(2)
In case of a conflict between an access

arrangement and any other agreement under
the provisions of these rules, the provisions of
these rules shall prevail.
Legend:
Page 45 of 132
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28
(1)
a
NOTIFIED RULE
Access Arrangements:
The transporter shall place on the website the
following which inter alia includes,
available capacity at entry and exit points shall
be updated on regular basis, but as at least
once a month;
procedures to apply for capacity allocation and

entering into gas transportation agreement;
RLNG or natural gas (entry) and Gas (exit)

quality specifications;
operational planning and scheduling;
Off-spec gas penalties;
draft term sheet;
approved tariff for firm and interruptible
services; and
standardized term sheet of transportation
agreement.
d
e
f
g
h
PROPOSED AMENDMENTS
Legend:
Page 46 of 132
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NOTIFIED RULE
PROPOSED AMENDMENTS
SCHEDULE - I
[See Rule 5(1)]
FORMAT FOR DECLARING CAPACITY OF
GAS PIPELINE TRANSPORTATION SYSTEM
BY TRANSPORTER
S/N
1
2
3
4
5
Description
Name of person:
Name of pipeline segment/ section:
Section wise capacity on the pipeline (to be
furnished for each section separately):
(a) Number of sections
(b) Name of section with start and end point:
(c) Capacity - (i). Volume terms
Number of AHAs:
Number of entry points on the pipeline route:
6
7
8
9
Location of entry points:

Number of exit points:
Location of exit points:
Entry point wise capacity (to be furnished
separately for each segment)
10
Exit point wise capacity (to

separately for each segment)
Legend:
be
furnished
Page 47 of 132
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NO.
11
12
NOTIFIED RULE
PROPOSED AMENDMENTS
Technical parameters:
(a) Inlet pressure at entry point:
(b) Calorific value band at entry point:
(c) Temperature:
(d) Other elements as per Schedule III
Status of extra capacity available in the gas
pipeline transportation system on common
carrier basis:
13
Detail of common carrier capacity being used by

transporter itself or on contract carrier basis:
14
Any demand pending with the transporter for

common carrier usage of the gas pipeline
transportation system along with duration of
such pendency:
15
Preference on entry and exit points:

For Distribution system Capacities to the extent
of Supply mains will be updated
Legend:
Page 48 of 132
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NO.
NOTIFIED RULE
SCHEDULE II
[See rule 5(3) & rule 11(3)]
FIRST
COME
FIRST
SERVED
CRITERIA
PROPOSED AMENDMENTS
(FCFS)
In order to ensure transparent and nondiscriminatory third party access under these
Rules, the prospective shipper shall submit
following information and documents along with
projected/firm timeline for compliance under
First Come First Served Criteria, as set out
hereunder, for capacity allocation.
For LNG developer/LNG buyer/RLNG buyer:
(a)
(b)
Committed first RLNG delivery date.

Implementation agreement (lA) with relevant
port authority.
Head of Agreement (HOA) with builder or
provider of Floating Storage and Re-gasification
Unit (FSRU) or Floating Storage Unit (FSU) for
the provision of FSRU/FSU in case of FSRU/FSU
based projects.
(d)
HOA in respect of LNG Terminal Usage

Agreement (TUA) with Terminal Owner and I or
operator (TO/O) by LNG buyer and I or RLNG
buyer, as the case may be.
(e)
agreement with credible and established LNG

shipper for supply of LNG to meet RLNG endusers purchase commitments.
Legend:
For LNG developer/LNG buyer.
Page 49 of 132
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NOTIFIED RULE
PROPOSED AMENDMENTS
(f)
Provisional list of RLNG buyers along with

volume and purchase firm commitments to be
provided
subsequently
for
the
capacity
requested.
(g)
Ramp-up period to achieve full utilization of Ramp-up Build-up period to achieve

capacity requested.
utilization of capacity requested.
(h)
Financial capacity verified by bankers and I

or lending institutions of international repute
with affiliates in Pakistan.
(i)
Provisional financial plan (debt and /or equity)

regarding the funding of the project.
Detailed design, engineering and construction
schedules.
Timeline for achieving Financial Close.
Engineering and construction contracts / EPC
contracts
with reputable companies after
achievement of Financial Close.
(j)
(k)
(l)
full
(m)
(m) RLNG purchase and sale agreement or

HOA signed with RLNG seller or RLNG reseller
or and
(n)
(n) Capacity availability letter of transporter.
Legend:
Page 50 of 132
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NO.
NOTIFIED RULE
(o)
PROPOSED AMENDMENTS
(o) The allocated capacity would automatically
be waived off if the final RLNG purchase & sale
agreement is not signed within thirty calendar
days of capacity allocation by the Authority.
For shippers other than LNG developers/LNG For shippers other than LNG developer / LNG
buyers/ RLNG buyer.
buyer;
Submission to the Authority of:
Gas sale and purchase agreement signed with
(i) RLNG Purchase and Sale Agreement or HOA producers of natural gas or natural gas seller
signed with an RLNG seller/RLNG reseller/ and
or natural gas reseller or the RLNG purchase
and sales agreement or HOA signed with RLNG
seller/RLNG reseller,as the case may be.
(ii) capacity availability letter of transporter.
The
allocated
capacity
would delete.
automatically be waived off if the final
RLNG Purchase and Sale Agreement is
not signed within fifteen (15) calendar
days of capacity allocation by the
Authority.
Legend:
Page 51 of 132
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NO.
4
NOTIFIED RULE
PROPOSED AMENDMENTS
The Authority shall undertake a due diligence of The Authority will undertake a due diligence of
the achievement of the above noted requisites the achievement of the above noted requisites
and project milestones and award capacity and project milestones. and a Awarding of new
allocation to the applicant on FCFS basis and in capacity allocation to the applicant shall be
terms of price competitiveness.
based on FCFS basis and in terms of price
competitiveness.
Legend:
Page 52 of 132
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NOTIFIED RULE
PROPOSED AMENDMENTS
Soon after the capacity allocation and not later Soon after the capacity allocation , the Shiper
than thirty days of dry financial close, the shall furnish to the Authority the performance
shipper shall furnish to the Authority the bank
gurantee
equal
to
one
year's
performance bank guarantee US$ five million transportation tariff in US$
or Rupee
from a reputable bank acceptable to the equivalent from a reputable bank acceptable to
Authority, encashable in Pakistan. Failure to the Authority, encashable in Pakistan. Failure to
achieve the above milestones may tantamount achieve the above milestones or compliance
to cancellation of allocated capacity and with the Authority's directions may tantamount
encashment of performance bank guarantee.
to cancellation of allocated capacity and
encashment of performance bank guarantee.
The
transporter
shall
only
start
their
infrastructure development after achieving the
wet financial closure or disbursement date by
the developers subject to the prior approval of
the Authority.
The Authority shall allocate/book capacity in The Authority shall allocate/book capacity in
transporters
gas
pipeline
transportation transporters
gas
pipeline
transportation
system:
system. The following rules shall apply for the
allocated/booked capacity:
(a) For the connected system operators for the
period as per the concession agreement with
respective port authority. If either of the below
cases happen, then allocated capacity to
connected system operator may be cancelled
by the Authority.
Legend:
Page 53 of 132
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NO.
NOTIFIED RULE
PROPOSED AMENDMENTS
(i) The construction is not completed within the

time allocated in the concession agreement with
respective port authority save for Force
Majeure.
Legend:
Page 54 of 132
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NO.
NOTIFIED RULE
PROPOSED AMENDMENTS
(ii) Insolvency of connected system operator.
(b) The applicant will be allowed to use

allocated capacity for three (3) months beyond
the committed First RLNG delivery date
submitted, and any extension approved by the
Authority based on achievement of credible
milestones which provide for surety of
completion of the LNG terminal and first RLNG
delivery in a reasonable time period. In addition
to the encashment of performance bank
guarantee, failure to achieve RLNG delivery and
capacity utilization within the stipulated time
shall result in cancellation of allocation, or reallocation to another LNG developer/LNG buyer,
who is next in-line on First RLNG delivery date
and has achieved the requisite milestones and
meet the criteria.
Legend:
Page 55 of 132
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NOTIFIED RULE
PROPOSED AMENDMENTS
For the shippers other than LNG developer/LNG For the shippers other than LNG developer/LNG
buyer, as per the period of the Gas/RLNG buyer, as per the period of the Gas/RLNG
Purchase and Sale Agreement, under which Purchase and Sale Agreement, under which
capacity will be allocated. In case of any of the capacity will be allocated. In case of any of the
below, then capacity allocated to shipper shall below, then capacity allocated to shipper shall
be cancelled by the Authority in a timely be cancelled by the Authority in a timely
manner.
manner. If the cancelled capacity is originally
assigned/transferred from an LNG developer as
per provisions of clause sub rule (2) of rule 12,
then cancelled capacity of the shipper shall
return back to original owner.
Legend:
Page 56 of 132
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NOTIFIED RULE
PROPOSED AMENDMENTS
(i) Early termination of Gas/RLNG Purchase and

Sale Agreement, under which capacity has
been allocated.
(ii) Insolvency or default of the shipper.
(iii) Insolvency or default of RLNG end buyer.
SCHEDULE - III
[See rule 8,20, 23(1)]
RLNG QUALITY SPECIFICATIONS FOR ENTRY
TO
TRANSPORTERS
GAS
PIPELINE
TRANSPORTATION SYSTEM
S/N
1
2
3
4
5
6
7
8
9
10
11
12
Parameters
Limit
Hydrocarbon dew point (Degree Fahrenheit,
max.)*
32*
Hydrogen Sulphide (grains/100 SCF, max.)
0.24
Total Sulphur (grains/100 SCF. Max)
3.5
Carbon Dioxide (mole % max.)
3
Nitrogen (mole % max.)
7**
Oxygen (mole % max.)
0.2
Total Inerts (mole % max.)
10
Temperature (Degree Fahrenheit, max.)
120**
Water Content (Lbs/MMSCF, max)
7**
Pressure (PSIG)
**
Calorific value (BTU/SCF)
925-1150
Wobbe Index (BTU/SCF)
1290+ 5%
Legend:
Page 57 of 132
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13
NOTIFIED RULE
PROPOSED AMENDMENTS
Purity: Be commercially free from foreign

materials and dust or other solid matter or
environmentally harmful substances, waxes,
gums and gum formatting constituents which
might cause interference with the proper
operation of the pipelines and associated
facilities.
* At all pressure.
** Indicative values maybe negotiated between
shippers and transporters in the access
arrangements.
Legend:
Page 58 of 132
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NO.
NOTIFIED RULE
PROPOSED AMENDMENTS
Schedule III(A)
Natural
Gas
quality
for
entry
to
transporter gas pipe line Transportation
System.
Legend:
Page 59 of 132
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NOTIFIED RULE
PROPOSED AMENDMENTS
SCHEDULE - IV
[See rule 15 and 19(4)]
TRANSPORTATION TARIFF
DETERMINATION OF TRANSPORTATION
CHARGES
1
In order to encourage a level playing field and
market development it is important that tariffs
for access to and use of gas pipeline
transportation systems should be as transparent
and non-discriminatory. The tariffs should be
cost reflective and they should still provide
sufficient incentive for efficient management,
system upgrade and expansion i.e. send
adequate signals for investments.
2
Achieving
cost
reflectiveness
requires
separating and allocating correctly the cost
element to different functions involved in
transportation (accounting segregation of
Transmission, Distribution, Sales etc), defining a
calculation
methodology
and
design
of
tarification.
Legend:
Page 60 of 132
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NOTIFIED RULE
PROPOSED AMENDMENTS
3
The key practical issues in tarification design
are: the income, the system owner will be
allowed to collect from the shippers and the way
this is recovered from the shippers. Due
consideration is to be given to the value of
assets being used, the appropriate rate of
return, depreciation, operating costs (variable
and fixed) and other similar financial matters
which may arise at the time of determination of
tariff.
4
It is essential that the value of regulated assets
(RAV) used for transportation is realistically
ascertained through accounting segregation and
determined to reflect current replacement cost
since the original cost has depreciated due to
which the allowable revenue declines as the
capital base fall, particularly in case of mature
pipeline system like SSGCL and SNGPL.
5
In order to recover the annual revenue
requirement, the transportation tariff shall
consist of following charges:
a
Capacity Charge = (Return on Asset) ROA on

RAV + Depreciation + Fixed Operating &
Maintenance Costs; and
Commodity Charge = Variable Operating &
Maintenance Costs
Legend:
Page 61 of 132
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NO.
6
NOTIFIED RULE
PROPOSED AMENDMENTS
Capacity Charges will be worked out on basis of

contracted capacity in relation to the technical
capacity of the relevant segments of gas
pipeline transportation system used by the
shipper.
Legend:
Page 62 of 132
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NOTIFIED RULE
PROPOSED AMENDMENTS
For return calculation purposes the existing For return calculation purposes the existing
fixed assets involved in transportation will be fixed assets involved in transportation will be
valued at replacement cost while additional valued at replacement cost, less accumulated
investments at actual cost. Revaluation of fixed depreciation
thereon
while
additional
assets in operation including reassessment of investments as appearing at historical written
their economic life for working out depreciation down cost.
Revaluation of fixed assets in
in respect of gas pipeline transportation system operation including reassessment of their
shall be carried out for determining net economic life for working out depreciation in
replacement value as on June 30, 2011 which respect of gas pipeline transportation system
may be reviewed after every 2 years.
shall be carried out for determining net
replacement value as on June 30, 2014 which
may be reviewed after every 5 years.
Depreciation on existing fixed assets involved in Depreciation of existing fixed assets involved in
transportation and used as common carrier will transportation and used as common carrier will
be based on the revised economic life of such be 2.5% based on economic life of such assets
for 40 years.
assets.
Depreciation on dedicated network or spur lines

which may become redundant after expiry of
access arrangement will be based on the tenure
of access arrangement.
10
10% return on replacement value ,less

accumulated depreciation, on net fixed assets
used for shippers transportation shall be
17% / 17.5% return on replacement value of net
allowed to SSGCL and SNGPL, subject to
fixed assets in operations shall be allowed to
changes in the rate of return from time to time.
SSGCL and SNGPL, subject to changes in rate of
return from time to time.
Legend:
Page 63 of 132
CLAUSE
NO.
NOTIFIED RULE
PROPOSED AMENDMENTS
11
Transportation charges shall be for recovery of

above costs and return as mentioned above,
considering entry and exit point:
Firm service access arrangement shall attract

fixed charges for contracted capacity and
commodity charges for volume handled in
MSCF.
Interruptible service contracts shall attract

charges for capacity utilization and volume
handling.
A worked example of transportation tariff is
made part of this Schedule.
Authorized over-run shall be charged at 110% of
transportation tariff.
The transportation and authorized over-run
charges shall be paid monthly by the shipper.
c
12
13
WORKED
SAMPLE
CLACULATION
TRANSPORTATION TARIFF UNDER
SCHEDULE
OF
Technical capacity of the segment for TPA

Shippers' Contracted Capacity
Technical capacity actually operated
Capacity utilized by the Shipper
Revenue
Requirements
(Total
Transportation Cost)
Fixed Cost based on Technical Capacity
Legend:
Page 64 of 132
CLAUSE
NO.
NOTIFIED RULE
Operating and Maintenance Cost
Depreciation on replacement value of
segment
ROA on replacement value of the segment
Legend:
PROPOSED AMENDMENTS
the
Page 65 of 132
CLAUSE
NO.
NOTIFIED RULE
PROPOSED AMENDMENTS
Operating expenses and maintenance cost

Variable Operating and maintenance Cost on
Capacity actually Operated
Transportation Tariff
Capacity charges based on Shipper' contracted
capacity against Technical capacity:
[Fixed cost x Contracted capacity]/Technical
capacity = 3600 x 100 / 200
Commodity charges based on volume actually

transported against actual operated Technical
capacity:
[Variable Operating & Maintenance Cost x
Contracted Volume actually transported] /
Technical Capacity actually operated = 400 x 80
/ 160
Total Tariff
In case of authorized overrun 110% of
total tariff
Legend:
Page 66 of 132
April 26, 2015
OGRA NOTIFIED TPA RULES, 2012
MENTS PROPOSED (SECOND DRAFT FOR REVIEW)
RATIONALE FOR THE PROPOSED

CHANGES / AMENDMENTS
Legend:
Page 67 of 132

Legend:
Page 68 of 132

There is no definition for Other

Connected
System
Operator.
Should be read as "Connected
System Operator".
Mo
deleted
subsequently.
Legend:
as
not
used
Page 69 of 132

Contracted capacity be longer than

one year to cover GPA & GSA
durations.
Legend:
Page 70 of 132

Pursuant to Rule 12(3) transporter
may have to deliver excess volume
of gas at the Exit Point than the
same received at the Entry Point in
order to deliver equivalent energy
at the Exit Point;
For clarity as to the inter

connections pipeline injection.
Legend:
Page 71 of 132

LNG developers or LNG buyers may

have their separate connected
system operators.
Legend:
Page 72 of 132

Legend:
Page 73 of 132

Like RLNG seller, the natural gas

seller is covered.
Legend:
Page 74 of 132

To limit the negative imbalance
with 1% may create operational
problems. Shipper and Transporter
might need to organise the
imbalances daily as per the access
arrangement
natural gas quality added under

condition 15 of OGRA license.
matching with RLNG reseller.
Legend:
Page 75 of 132

Legend:
Page 76 of 132

To limit the positive imbalance with
2%
may
create
operational
problems. Shipper and Transporter
might need to organise the
imbalances daily as per the access
arrangement.
Legend:
Page 77 of 132

Legend:
Page 78 of 132

Connected system operator's as
well natural gas seller (holding
license under OGRA licensing
Rules)can also be a Shipper
Legend:
Page 79 of 132

Legend:
Page 80 of 132

Shipper to bear transportation loss
as allowed by the Authority to the
transporter under Tariff Rules 2002.
Legend:
Page 81 of 132

Legend:
Page 82 of 132

Same energy quantity should be
delivered between entry and exit
points,
Legend:
Page 83 of 132

Legend:
Page 84 of 132

connected
included.
Legend:
system
operator
Page 85 of 132

Legend:
Page 86 of 132

Legend:
Page 87 of 132

Authority
need
not
approve
available capacity.
consequential amendment per 5(2)
above.
Legend:
Page 88 of 132

Legend:
Page 89 of 132

correction
Legend:
Page 90 of 132

Legend:
Page 91 of 132

Legend:
Page 92 of 132

Legend:
Page 93 of 132

Legend:
Page 94 of 132

Legend:
Page 95 of 132

Legend:
Page 96 of 132

Transporter to meet heat contents
of shipper gas at exit point from its
own gas and claim as part of
unaccounted for gas from the
Authority.
Legend:
Page 97 of 132

Legend:
Page 98 of 132

Legend:
Page 99 of 132

Legend:
Page 100 of 132

Legend:
Page 101 of 132

Legend:
Page 102 of 132

Correction of heading
Legend:
Page 103 of 132

Legend:
Page 104 of 132

Correction of reference.
Legend:
Page 105 of 132

Legend:
Page 106 of 132

Legend:
Page 107 of 132

This covers RLNG and natural gas

shippers.
Legend:
Page 108 of 132

Legend:
Page 109 of 132

Legend:
Page 110 of 132

Correction of reference.
Legend:
Page 111 of 132

Legend:
Page 112 of 132

Legend:
Page 113 of 132

Legend:
Page 114 of 132

Legend:
Page 115 of 132

recognized definition is build-up

period.
Legend:
Page 116 of 132

This is covered in clause 2 (o)

above.
Legend:
Page 117 of 132

Grammar corrected
Legend:
Page 118 of 132

Legend:
Page 119 of 132

Legend:
Page 120 of 132

Legend:
Page 121 of 132

If a non LNG Developer shipper is
not performing, then capacity
should return to original owner,
LNG developer.
Legend:
Page 122 of 132

Legend:
Page 123 of 132

Legend:
Page 124 of 132

Legend:
Page 125 of 132

Legend:
Page 126 of 132

Legend:
Page 127 of 132

Legend:
Page 128 of 132

Current replacement value is
depreciated back to the year of
operation. Revaluation of net fixed
assets in operation as on 30th June
2014 now suggested. Revaluation
is an involved / lengthy exercise
therefore may be carried out after
every five years.
From 1962 to 1982 the rate was

2.5% per attachment.
ROR on replacement value @10% is

in line with IBRD LOAN-2324-PAK
dated
21.07.1983
as
against
exiting ROA based on WDV.
Legend:
Page 129 of 132

Legend:
Page 130 of 132

Legend:
Page 131 of 132

Legend:
Page 132 of 132

Notified Rule Proposed Amendments Clause NO

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Notified Rule Proposed Amendments Clause NO

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OGRA NOTIFIED TPA RULES, 2012

AMENDMENTS PROPOSED (SECOND DRAFT FOR REVIEW)

SHORT Title, commencement, extent and

These Rules are applicable to a person who is

natural gas transmission and distribution

These Rules shall extend the whole of Pakistan.

"AHA" means a homogenous area which means

"available capacity means the difference

base conditions means volume and gross

common carrier means a facility declared to

connected system means a natural gas

custody transfer measuring facility

dispute means any dispute or difference

exit point means the flange at downstream

"firm basis" means the commitment made by

firm service means a fixed obligation where

gas pipeline transportation system

interruptible basis means gas service

line pack (LP) means the volume of gas in a

LNG buyer means a Government designated

LNG developer means a private or public

"LNG terminal means facilities for receiving,

"natural gas" means

natural gas specification mean the

natural gas reseller means a person who

nomination means notification process

operating pressure means the pressure

"Ordinance" means Oil and Gas Regulatory

re-gasified liquefied natural gas (RLNG)

RLNG end buyer means person who have

RLNG reseller means person who purchase

RLNG seller means LNG developer, LNG

RLNG specification means RLNG supplied

spur pipeline is a pipeline, which emanates

system integrity means any situation in

system use gas (SUG) means the quantity

technical capacity means the maximum

transportation tariff means the charges

transporter means a person holding valid

unit of measurement means unit

The words and expressions used but not defined

The Shippers shall have access to the gas

Facilities on Gas Transportation Pipeline

Shipper or connected system operator shall

Tie-in of shippers or connected system

Transporter shall arrange to deliver gas at its

Transporter shall own, operate and maintain the

Tie-in of transporter's facility at exit point to the

The shipper, connected system operator,

The transporter or shipper or connected system

The transporter shall declare, in MMCFD, the

The available capacity shall be approved by the deleterule 5(2)

The declared available capacity, if varies

Capacity Extension and Expansion

If additional capacity in the gas pipeline

Maintenance cost and risk

RLNG delivered by the shipper or by the

Transporter may deliver commingled gas of

Requests from Prospective LNG developer

The transporter shall then negotiate and enter

The LNG developer or LNG buyer shall submit

Each application received by a transporter for

Capacity may be applied on firm basis or on