OGRA withdraws LNG price hike notification

The Nation  |  Aug 04, 2021

ISLAMABAD - Oil and Gas Regulatory Authority (OGRA) for the first time in its history has withdrawn its notification regarding hike in RLNG price based on the purchase price of liquefied natural gas (LNG) cargo at $20.055 per unit, saying that buyer, Pakistan State Oil (PSO), had informed that the bid was cancelled.

Interestingly, the August prices of RLNG was worked out by OGRA with the  advice of Ministry of Energy, and no objection had come from any quarter even after 12 hours of the announcement of the RLNG prices by OGRA.

In its notification for the month of August, OGRA had clearly mentioned that the August price for one cargo of PSO was 27.8675 percent of Brent which can be translated into monetary term of $20.055 per unit LNG. The price of five cargoes from Qatar was 13.37 of the Brent which is almost half of the spot purchase. The OGRA on Monday had increased the provisional price of RLNG for the consumers of both gas companies and jacked up the rates for the consumers of Sui Northern Gas Pipeline Limited (SNGPL) by $0.692 per mmbtu or 5.36 per cent while for the consumers of Sui Southern Gas Company (SSGC) it had been increased by $0.707 per mmbtu or 5.59 per cent.

Spain to take on Brazil in men's football final in Tokyo Olympics Later in the day, while terming the report of high purchase price of LNG by PSO fake, the Ministry of Energy said that PSO has refuted the purchase of $20.055 per unit LNG, as it has not awarded any such tender and it was already scrapped on 27th July.

A spokesman of the OGRA meanwhile said that “as per routine monthly practice, estimated prices of RLNG are computed based on available data at the time of computation. Since the prices are for the month in advance, many pricing components are calculated for determination of prices provisionally based on available data at that time, which is later actualized by OGRA based on actual costs incurred”.

However, as informed by PSO that they have scraped the cargo with offered price of 27.87 percent of the Brent, RLNG price notified on 2nd August is no more valid and August RLNG price notification is being withdrawn, the spokesman added.

PM asks Muslim countries to counter growing Islamophobia The question is when the bid was scrapped on 27th July then why the Ogra was not provided the updated information?

When contacted, an official of OGRA told The Nation on condition of anonymity that the regulator has no mechanism to determine the rates of RLNG on its own. OGRA is calculating the figures provided by the government entities. Till the announcement of the RLNG price for the month of August there was no intimation from PSO regarding scrapping of the bid, the official added.

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