ISLAMABAD - Oil and Gas Regulatory Authority (OGRA) on Friday slashed the prices of imported Re-gasified Liquefied Natural Gas (RLNG) by up to 20.57pc for the consumers of Sui Southern Gas Company Limited (SSGC) and Sui Northern Gas Pipeline Limited (SNGPL).

Notification issued by the Oil and Gas Regulatory Authority (OGRA) said that for the month of July the price of RLNG for SSGCL has been reduced by $4.6501 per Metric Million British Thermal Unit (MMBtu), while for the SNGPL it has been reduced by $3.3088 per Metric Million British Thermal Unit (MMBtu).

The regulator decreased the weighted average gas sale price of imported RLNG by $4.6501/MMBtu or 20.57pc on the distribution network of Sui Southern Gas Company (SSGC). After the cut, the prices of RLNG will go down to $17.9575/MMBTU for July from $22.6076/MMBtu during June.

Similarly, the weighted average gas sale price of SNGPL distribution network has been decreased by 15.93pc. The price of RLNG at SNGPL network has been slashed to $3.3088.MMBtu. With reduction, the rate of RLNG will come down to $17.4603/MMBtu for July from the June price of $20.7691/MMBtu.

According to OGRA, total of eight LNG cargoes were imported by Pakistan State Oil (PSO) under two long term contracts with Qatar. Pakistan LNG Limited (PLL) failed to procure any LNG cargo during July. The main reason for decrease in RLNG prices in July is due to no procurement of pricy LNG under spot purchase. Under long two term contracts with Qatar PSO is procuring LNG at 13.37pc of Brent and 10.20pc of Brent. The prices of LNG under long term contract are almost half of the spot purchases. The Ogra decision of reducing the RLNG prices will also have an impact on the cost of electricity of RLNG based power plants.

The decrease in RLNG rate will also reduce the electricity cost from RLNG based power plants during July.

For June the cost of LNG based power generation was more than Rs28/unit.