Ogra Raises RLNG Prices Due to Higher International Rates
The Oil and Gas Regulatory Authority (Ogra) has announced an increase in the sale price of Regasified Liquified Natural Gas (RLNG) for Sui gas companies SSGCL and SNGPL, citing higher international prices. This hike comes after two consecutive monthly price cuts of 9% in February and 8% in January.
For March, the RLNG sale price for Lahore-based Sui Northern Gas Pipelines Ltd (SNGPL) has been raised by 2.75% to $11.86 per mmBtu, compared to $11.55 in February. Similarly, the RLNG sale price for Karachi-based Sui Southern Gas Company Ltd (SSGCL) has increased by 0.8% to $11.215 per mmBtu.
The difference in RLNG prices between SSGCL and SNGPL is attributed to higher system losses of SSGCL, as indicated by Ogra’s tariff sheet. SSGCL’s system losses, including transmission and distribution losses, are significantly higher at 14.48% compared to SNGPL’s 8.61%.
It’s noteworthy that RLNG distribution prices for both companies remain higher than Pakistan State Oil’s (PSO) average delivered price ex-ship (DES) due to additional charges for profit margins and losses. The basket RLNG price for March was based on a total of 10 cargoes.
Overall, the increase in RLNG prices reflects the impact of rising international rates on Pakistan’s energy sector.
Story by Khaleeq Kiani
