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Impact of the increase in natural gas prices

Impact of the increase in natural gas prices
Oman Chlorine
OCHL
0.00% 0.24 0.00

Referringto the issue ofrevising the sale prices of gas to domestic consumers, and the requirement to disclose the financial impact of the increase of natural gas prices on the company, we would like to inform you the following:

1. Our company has a 25-year contract with PEIE effective until the date of December 31, 2031 to provide us with natural gas for an immutable fixed price during the contract period.


2.The following table shows the expectedf inancial impact that will occur on the company as a result of increasing the natural gas price to $3 per thermal unit with effect from January 1, 2015 and a cumulative annual increaseof 3% if applied to our company:

 

Year

2015

2016

2017

2018

2019

Actual Consumption (CMT)

3,785,610

3,785,610

3,785,610

3,785,610

3,785,610

Current Rate (CMT)

OMR

0.0205

OMR

0.0205

OMR

0.0205

OMR

0.0205

OMR

0.0205

New Rate (CMT)

OMR

0.0410

OMR

0.422

OMR

0.0435

OMR

0.0448

OMR

0.0465

Expected Additional Cost

OMR

77,605

OMR

82,261

OMR

87,057

OMR

91,997

OMR

97,085