ISLAMABAD - The Oil and Gas Regulatory Authority (Ogra) Thursday reduced the prices of re-gasified liquefied natural gas (RLNG) by up to 2.2pc for the consumers of Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC), for January 2023, according to the notification issued by OGRA. For Sui Northern Gas Pipeline Limited (SNGPL) consumers, its price has been reduced by 1.02pc or $0.1478/MMBtu, while for Sui Southern Gas Company (SSGC) the price has been slashed by 2.2pc or $0.3297/MMBtu over the previous month. After the notification, the price of RLNG for the consumers of SNGPL has been decreased from $14.4666 per MMBtu in December to $14.3188/mmBtu, while for SSGC consumers price has been decreased from $14.8454/ MMBtu in December to $14.5157/ mmBtu for January 2023. It is worth mentioning here that the prices of RLNG have recorded a decline of 18pc since September 2022. In September, the price of RLNG was hovering above $17 per Million British Thermal Unit (MMBTU). However, the new RLNG prices are higher than the prices in the same month of last year. During January 2022, the RLNG price was $13.5655/MMBtu for SNGPL and $14.2803/MMBtu for SSGC consumers. The notified prices of RLNG also include charges of the LNG terminals, transmission losses, port charges, and margins of the state-run importers — Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL). These new weighted average sale prices of RLNG have been computed based on 10 cargoes (nine by PSO and one by PLL). Under two longterm contracts with Qatar, PSO is procuring LNG at 13.37 percent of Brent and 10.20 percent of Brent respectively. Six cargos were procured at a slope of 13.37 percent of Brent while three were at 10.2 percent. Whereas, PLL procured one cargo at a slope of 12.14 percent of Brent. Pakistan has stopped purchasing of LNG from the spot market, owing to its abnormally high prices, and is currently procuring LNG from long term contracts. For the last six months, PLL has been procuring one cargo per month. For Pakistan, RLNG is the second major contributor to the country’s power generation after hydroelectric sources. Its price variation also strongly affects the cost of generation, which is subsequently translated into the power tariff for consumers.
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