OGRA has officially released the revised prices of RLNG for Sui Northern Gas Pipelines Limited and Sui Southern Gas Company Limited, effective January 1, 2024.
The Oil and Gas Regulatory Authority (OGRA) has officially released the revised prices of re-gasified liquefied natural gas (RLNG) for the Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL), effective January 1, 2024.
This move comes against the backdrop of significant changes in global energy markets, particularly a decrease in Delivered Ex-Ship (DES) prices.
According to the latest notification by OGRA, the RLNG transmission prices for SNGPL have been set at $12.65 per Million British Thermal Units (MMBtu), with a distribution cost of $13.68 per MMBtu for the month of January 2024. On the other hand, SSGCL will see a transmission rate of $12.22 per MMBtu and a distribution rate of $14.24 per MMBtu during the same period.
The detailed breakdown provided by OGRA reveals that compared to December 2023, there has been a noticeable decrease in RLNG prices. For SNGPL, the transmission and distribution prices have seen a reduction of 7.55% and 7.58%, respectively. Similarly, SSGCL’s transmission and distribution rates have experienced a decline of 7.80% and 7.81%, indicating a substantial adjustment in response to market dynamics.
The regulatory authority clarified that the adjustments in RLNG prices are a direct result of the decrease in Delivered Ex-Ship (DES) prices, reflecting the ongoing fluctuations in the global energy landscape. OGRA aims to strike a balance between ensuring the viability of the energy sector and providing consumers with fair and reasonable pricing.
In a statement, OGRA highlighted the importance of adapting to the evolving global energy market conditions. The regulatory body emphasized that these adjustments are crucial to maintaining a sustainable and competitive RLNG market within the country. OGRA further assured that it will continue to monitor market trends closely and make necessary adjustments to keep the energy sector resilient.
The announcement comes at a time when Pakistan is actively securing LNG cargoes from various sources to meet its growing energy demands. Recently, the country secured its second LNG cargo from Azerbaijan, showcasing its commitment to diversifying its sources of energy and ensuring a stable supply.
Industry experts suggest that the decrease in RLNG prices could positively impact various sectors of the economy, including manufacturing and transportation, by lowering the overall cost of energy. However, stakeholders are urged to stay vigilant and adapt their strategies to the dynamic nature of the global energy market.
As the world grapples with shifting energy dynamics and geopolitical factors, OGRA‘s proactive approach in adjusting RLNG prices reflects the regulatory body’s commitment to fostering a competitive and resilient energy sector in Pakistan. The coming months will likely witness continued adjustments in response to global market trends, and OGRA remains a key player in ensuring a balanced and sustainable energy ecosystem for the nation.