In response to significant system losses and decreasing international prices, the Oil and Gas Regulatory Authority (Ogra) has announced a reduction in the sale price of Regasified Liquefied Natural Gas (RLNG) for Sui Southern Gas Company Ltd (SSGCL) and Sui Northern Gas Pipelines Ltd (SNGPL) for the current month, effective Feb 1.
This marks the second consecutive month of decline in RLNG prices, following an 8% drop in the previous month, subsequent to a 10% increase in December 2023.
For SSGCL, the transmission stage price has been reduced by 9.02% to $11.126 per million British thermal unit (mmBtu) from $12.229 mmBtu in January. Similarly, for SNGPL, the price has been slashed by 8.72% to $11.55 per mmBtu at the transmission stage.
The reduction in RLNG prices is attributed to lower international prices and the disparity in system losses between SSGCL and SNGPL. Ogra reported SSGCL’s transmission and distribution system losses at 14.48% compared to SNGPL’s 8.61%.
Despite SNGPL’s larger distribution network, RLNG distribution prices remain higher compared to Pakistan State Oil’s (PSO) average delivered price ex-ship (DES), primarily due to profit margins charged by LNG importers PSO and Pakistan LNG Ltd (PLL).
The basket RLNG price for February is based on 10 cargos, including contracts with Qatar and imports by PLL, averaging $9.36 per mmBtu.
Ogra emphasized that the price adjustments align with policy guidelines issued by the federal government through the Ministry of Energy.
