ISLAMABAD-The government Tuesday increased the prices of re-gasified liquefied natural gas (RLNG) for both the Sui companies by up to $0.3987 per MMBtu (3.08 percent) for the month of September.
According to notification issued by Oil and Gas Regulatory Authority, RLNG price for the Sui Northern Gas Pipelines Limited (SNGPL) consumers has been increased by $0.3481 per MMBtu or 2.79 percent from the previous month, while for Sui Southern Gas Company (SSGC), prices have been raised by $0.3987 per MMBtu, marking a hike of 3.08 percent compared to August.
The Oil and Gas Regulatory Authority (OGRA) in accordance with the policy guidelines of the federal government has determined the regasified liquified natural gas (RLNG) prices for Sui companies effective from September 1st, 2023, said spokesman Ogra. The increase in RLNG prices is due to increase in RLNG brent prices in the international market, the spokesman added. However, besides its hike in the international market, the devaluation of Pakistani rupee is also one of the reasons for the hike in RLNG prices.
OGRA issued its determined RLNG weighted average sale provisional price and has set the rate at $12.8366 per MMBtu for SNGPL consumers, while SSGC consumers will pay $13.3636 per MMBtu for the month of September. For the month of August, Ogra determined the RLNG prices at $12.4885 per MMBtu for SNGPL consumers, while for SSGC consumers it was $12.9649 per MMBtu.
In contrast, during July 2023, SNGPL consumers were charged $12.4885 per MMBtu for RLNG, while for SSGC consumers it was $12.9649 per MMBtu. Since January this year, Ogra had seven times slashed the prices of RLNG while increased it twice, one for May and September.
The downward trend in RLNG prices started in January with a decrease of up to 2.2 percent, followed by further reductions of 4.3 percent in February, 3.16 percent in March, and 0.47 percent in April. In May, its price was increased by 1.3 percent and again it started reducing in June as it was reduced by 2.55 percent, in July by 1.5 percent and for August, its price was cut by 1.3 percent.
The newly adjusted RLNG prices encompass various components such as charges for LNG terminals, transmission losses, port charges, and margins for state-run importers, namely Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL). These prices were determined based on the import of eight cargoes by PSO and one cargo by PLL. It’s noteworthy that PSO procures LNG under two long-term contracts with Qatar, with pricing mechanisms set at 13.37 percent and 10.20 percent of Brent crude oil prices, respectively. Since LNG is pegged to the price of crude, so gas price also fluctuates with crude price movement.