ISLAMABAD: The government on Tuesday cut the re-gasified liquefied natural gas (RLNG) prices for both the Sui companies by up to 1.5 percent, or $0.1938 per MMBtu, for the month of July 2023.
The price of RLNG for Sui Northern Gas Pipelines Limited (SNGPL) consumers has been reduced by $0.0688 per MMBtu, while for Sui Southern Gas Company (SSGC) clients, prices have been decreased by $0.1938 per MMBtu from the previous month (June 2023).
According to a notification issued by the Oil and Gas Regulatory Authority (OGRA), the RLNG weighted average sale provisional price has been set at $12.6493 per MMBtu for SNGPL consumers and $13.1367 per MMBtu for SSGC consumers.
In June 2023, the price of RLNG was $12.7181/mmBtu for SNGPL consumers and $12.9429/mmBtu for SSGC consumers.
The reduction in RLNG prices follows a series of consecutive decreases implemented by the government in the past five months. However, in May, the average sale price of RLNG was raised by $0.1768 per MMBtu (1.3 percent) for consumers of both Sui companies.
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. In April, they were reduced by 0.47 percent.
The newly adjusted RLNG prices include charges for LNG terminals, transmission losses, port charges, and margins of the state-run importers, Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL). The prices were calculated based on the import of nine cargoes by PSO and one cargo by PLL.
PSO procures LNG under two long-term contracts with Qatar, with prices set at 13.37 percent and 10.20 percent of Brent, respectively. The price of RLNG is closely linked to the price of crude oil, resulting in fluctuations in gas prices with changes in crude oil prices. —
