ISLAMABAD: The government on Thursday reduced price of re-gasified liquefied natural gas (RLNG) for May 2020 by 21.63 percent for Sui Northern Gas Pipelines Limited (SNGPL) and 18.9 percent for Sui Southern Gas Company (SSGC) over the previous month following a sharp decline in international crude oil price.
The Oil and Gas Regulatory Authority (OGRA) notified the RLNG prices by setting the new prices at $7.5105/mmbtu for the consumers of SNGPL and $7.7521/mmbtu for
Last month, the RLNG price for SNGPL was $9.5834/mmbtu and for SSGC, it was $9.5582/mmbtu. In absolute terms, the RLNG price was slashed by $2.0729/mmbtu for SNGPL and 1.8061/mmbtu for SSGC.
For April too, the government had slashed the RLNG prices by 15.67 percent for SNGPL and 15.9 percent for SSGC.
The reduction in imported fuel price would have a positive impact on curtailing inflationary pressure on the economy.
Since, RLNG is the major contributor to power generation after hydel sources, so with the decline of the RLNG prices, the cost of energy will also reduce and the benefit is likely to be passed on to power consumers.
The new notified prices of RLNG also include charges of the LNG terminals, transmission losses, port charges, and margins of the importers ie Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL).
The new weighted average sale prices of RLNG have been computed based on the eight cargoes imported in the month including six cargoes by PSO and two by Pakistan LNG.
These new weighted average sale prices of RLNG were computed, based on the eight cargoes imported for the month including six cargoes by PSO and two by PLL.
LNG is an imported product and remains pegged with the international oil prices. With the drop in oil price in the international market, LNG’s cost can also go down in the months to come, and will benefit the domestic and industrial sectors.
Demand from the world’s biggest buyers of liquefied natural gas (LNG) has plunged, dragging Asia’s spot prices to record lows and forcing some suppliers to start cutting output. Asia’s spot LNG prices dropped to $1.85 per million British thermal units (mmBtu) last week, the lowest ever, as cargoes have flooded the market.
Since RLNG has been the second major contributor to power generation after hydel resources, with the decrease in RLNG prices, the cost of energy also goes down, which is charged from consumers.
