ISLAMABAD-The government Thursday reduced the prices of re-gasified liquefied natural gas (RLNG) for both the Sui companies by up to $0.714 per MMBtu (5.22 percent) for the month of June.
According to notification issued by Oil and Gas Regulatory Authority, RLNG price for the Sui Northern Gas Pipelines Limited (SNGPL) consumers has been reduced by $0.6816 per MMBtu, while for Sui Southern Gas Company (SSGC) clients, price has been decreased by $0.714 per MMBtu. OGRA issued its determined RLNG weighted average sale provisional price notice and set RLNG prices at $12.7181 per MMBtu for the consumers of SNGPL and $12.9429 per MMBtu for SSGC consumers.
For the month of May, the price of RLNG was $13.3997/mmBtu for the consumers of SNGPL and $13.6569/mmBtu for SSGC consumers. Prior to May the government had reduced the prices of RLNG for consecutive four months. For the month of May, the government had raised the average sale price of re-gasified liquefied natural gas (RLNG) by up to $0.1768 (1.3 percent) per mmBtu for the consumers of both the Sui companies for May 2023. However, in January, RLNG prices were decreased by up to 2.2 percent, followed by a reduction of 4.3 percent in February and 3.16 percent in March, and in April it was reduced by 0.47 percent.
The newly 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 eight cargoes imported by PSO, while PLL imported one cargo of this super-chilled gas. Under two long-term contracts with Qatar, PSO is procuring LNG at 13.37 percent of Brent and 10.20 percent of Brent respectively. Five cargos were procured at a slope of 13.37 percent of Brent while three at 10.2 percent. Except February when PLL made no procurement, for the months of March and April, it imported one cargo each, two cargoes in May. And now for June, it imported one cargo at a slope of 12.14 percent. Since LNG is pegged to the price of crude, so gas price also fluctuates with crude price movement.