ISLAMABAD - The Re-Liquefied Natural Gas (RLNG) prices for November gone down a bit, for the consumers of both the Sui Companies, after the country received two cargoes from the new long term contract with Qatar at cheaper rate.
A notification issued by OGRA said that it has decreased the price of RLNG by $0.1037 per MMBTU for the consumers of Sui Northern Gas Pipeline Company Limited (SNGPL) and $0.1021 per MMBTU for Sui Southern Gas Company Limited (SSGC). The regulator decreased the provisional price of RLNG and reduced the rates for the consumers of SNGPL to $15.6791 per MMBTU from the earlier $15.7828 per MMBTU in October. While for the consumers of SSGC it has been decreased to $15.4259 per MMBTU from $15.5280 MMBTU in October.
The RLNG prices decreased despite the highest ever spot purchase of $30.65 MMBTU made by Pakistan LNG Limited (PLL). The reason for the decrease is Pakistan State Oil will receive two cargoes at cheaper rates from the second long term contract with Qatar.
As per the OGRA notification a total of 10 cargoes are due in November, 2021, with eight cargoes are coming from two long term contracts with Qatar and two are coming to PLL under spot purchases. PLL had to resort to expensive LNG spot purchase after two of its long term supplier including ENI and GUNVOR had willfully defaulted on their commitment for the supply of one each LNG cargo during November, 2021.
Both of the PLL cargoes for November are coming from spot purchases with one cargo at $17.5350 per MMBTU and the second one for $30.6500 per MMBTU. The average price of PLL procured LNG is $24.0925 per MMBTU. Similarly PSO has procured six cargoes from Qatar under previous long term agreement and two from new long term agreement. In February this year, Pakistan and Qatar had signed second long-term Liquefied Natural Gas (LNG) supply contract for additional 200 million cubic feet a day (MMCFD). The 10-year agreement signed with Qatar is around 31 percent lower than the rate of 2015 long term contract for with Doha. The cost of the LNG procured from the previous contract is $10.2073, while from price of new contracted LNG is $7.7871 per MMBTU. The average cost of PLL procured LNG is 9.6763 per MMBTU.
It is worth to mention here that in October OGRA had increased the price of RLNG by $0.4294 per MMBTU for the consumers of Sui Northern Gas Pipeline Company Limited (SNGPL) and $0.4362 per MMBTU for Sui Southern Gas Company Limited (SSGC). For September also the regulator had increased the prices by 16.5 percent ($2.1369 per Million British Thermal Units) for the consumers of SNGPL and SSGC.