OGRA Reduces RLNG Prices by Around 20% in September
ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has reduced the prices of regasified liquefied natural gas (RLNG) by around 20 percent for September, mainly due to lower-cost LNG cargoes imported from Qatar.
The latest notification shows that RLNG prices at the distribution stage for the two Sui gas companies have declined significantly compared with August.
The reduction follows the arrival of two LNG cargoes in September at an average delivered price of $10.06 per million British thermal units (mmBtu). The average price stood at $12.12 per mmBtu in August and $18.96 per mmBtu in July.
The lower LNG cost is expected to reduce fuel expenses for power generation and other consumers using RLNG.
RLNG Prices for SNGPL
According to OGRA’s notification, the RLNG sale price for Sui Northern Gas Pipelines Limited (SNGPL) at the transmission stage fell by 19.99 percent to $13.99 per mmBtu in September from $17.49 in August.
At the distribution stage, the price decreased by around 20.14 percent to $15.196 per mmBtu, compared with $19.02 per mmBtu in the previous month.
SNGPL supplies natural gas to consumers across Punjab and Khyber Pakhtunkhwa.
Prices for SSGCL Also Decline
For Sui Southern Gas Company Limited (SSGCL), the RLNG price at the transmission stage dropped by 21.53 percent to $12.611 per mmBtu in September from $16.07 in August.
At the distribution stage, the price declined by 21.57 percent to $14.22 per mmBtu, compared with $18.13 per mmBtu in August.
SSGCL supplies gas to consumers in Sindh and Balochistan.
Lower Import Cost
The latest reduction is linked mainly to the lower cost of LNG cargoes imported during September.
However, the final RLNG price remains higher than the delivered cost of imported LNG because of various charges, margins and system losses across the supply chain.
According to the notification, system losses were around 8.97 percent for SNGPL and 12.55 percent for SSGCL. Importers and port authorities also apply certain charges and margins to the LNG supply chain.
The September notification means RLNG consumers will face lower prices compared with the previous two months, although the impact on individual consumers will depend on their category and applicable gas pricing structure.
