OGRA issued a notification setting RLNG prices at $13.294/MMBTU for SNGPL customers and $13.51/MMBTU for SSGC customers on Tuesday.
The Oil and Gas Regulatory Authority (OGRA) has announced a 3.16% reduction in the average sale price of re-gasified liquefied natural gas (RLNG) for March 2023.
Over the previous month, February 2023, the RLNG price for Sui Northern Gas Pipeline Limited (SNGPL) customers was reduced by 2.99%, or $0.41 per million British Thermal Units (MMBTU), while prices for Sui Southern Gas Company (SSGC) customers were reduced by 3.17%, or $0.442/MMBTU.
OGRA issued a notification setting RLNG prices at $13.294/MMBTU for SNGPL customers and $13.51/MMBTU for SSGC customers on Tuesday.
It should be noted that LNG is linked to the price of crude oil. The price of gas fluctuates in tandem with the price of crude oil. Other factors influencing RLNG prices include global demand and supply, transportation costs, and geopolitical events. As a result, RLNG prices in Pakistan, like any other country, can fluctuate over time.
Pakistan imports this super-chilled fuel to meet nearly a third of its energy needs. The government has been lowering RLNG prices for local consumers since May 2022. According to data, the RLNG price in the domestic market in May 2022 was the highest ($21.8317/MMBTU for SNGPL and $23.7873/MMBTU for SSGC) since Pakistan began importing LNG in 2015.
The newly announced RLNG prices include LNG terminal charges, transmission losses, port charges, and the margins of the state-run importers, Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL).
These new weighted average RLNG sale prices were calculated using nine cargoes imported by PSO and one cargo imported by PLL of this super-chilled gas.
PSO purchases LNG from Qatar under two long-term contracts at 13.37% and 10.20% of Brent, respectively. Five cargos were obtained at a slope of 13.37% of Brent, while three were obtained at 10.2%. PLL has procured one cargo per month for the last eight months, with the exception of February, when there was no procurement.
When compared to the same month last year, the newly announced prices for SNGPL were lower and those for SSGC were higher. In March 2022, the RLNG price was $15.813/MMBTU for SNGPL customers and $17.115/MMBTU for SSGC customers. Because Pakistan’s domestic natural gas reserves are limited and rapidly depleting, the country heavily relies on imported LNG to meet its energy needs.
The import of LNG has assisted Pakistan in bridging the gap between natural gas demand and supply, as well as meeting the energy needs of various sectors such as power generation, industry, and transportation.