OGRA Increases RLNG Prices by Around 15% for June Amid Higher Import Costs
The Oil and Gas Regulatory Authority (OGRA) has announced an increase of around 15% in the price of Regasified Liquefied Natural Gas (RLNG) for June, reflecting higher import costs and changes in supply conditions.
The revised prices apply to RLNG supplied through Pakistan’s two gas distribution companies—Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL).
RLNG Prices Rise for Both Gas Utilities
According to the latest notification, RLNG prices at the distribution stage have increased compared with May.
For SNGPL:
- Transmission-stage price increased to $17.94 per MMBtu, up from $15.62 per MMBtu in May.
- Distribution-stage price rose to $19.52 per MMBtu, compared with $16.98 per MMBtu in the previous month.
For SSGCL:
- Transmission-stage price increased to $16.37 per MMBtu, up from $14.09 per MMBtu.
- Distribution-stage price reached $18.64 per MMBtu, compared with $16.04 per MMBtu in May.
Higher Import Costs Contribute to Price Increase
Officials said the increase was mainly linked to higher LNG procurement costs, including purchases from the international spot market when additional supplies were required.
The pricing also reflects expenses associated with transportation, terminal operations, system losses and other components of the RLNG supply chain.
Impact on Power Generation
The higher RLNG prices are expected to influence fuel costs for electricity generation.
According to available data, the fuel cost of RLNG-based power generation increased significantly in May compared with the previous month, reflecting the rise in imported fuel prices.
LNG Supply Sources
The June pricing was calculated using a basket of four imported LNG cargoes.
Most cargoes were supplied under long-term agreements, while one cargo was procured from the international spot market to help meet domestic demand.
Officials noted that market conditions and supply challenges affected procurement costs during the period.
Distribution Companies Continue Nationwide Supply
SNGPL supplies natural gas to consumers across Punjab and Khyber Pakhtunkhwa, while SSGCL serves customers in Sindh and Balochistan.
The final RLNG price includes import costs as well as expenses related to transportation, infrastructure, distribution and operational losses within the gas network.
Continued Monitoring of Energy Market
Energy regulators and government authorities continue to monitor international LNG markets and domestic demand to ensure adequate fuel supplies.
Future RLNG prices will depend on global LNG market trends, import costs, exchange rates and overall supply conditions in the energy sector.
