- RLNG was attributed to the rise in Brent prices.
- Ogra reduced RLNG prices seven times since January.
- Pakistan depends on LNG to meet about one-third of its demands.
ISLAMABAD: The government has approved an increase of regasified liquefied natural gas (RLNG) prices by half a dollar per MMBTU or up to 3.8% for both Sui Gas companies for October 2023. news Reported on Tuesday.
The Oil and Gas Regulatory Authority (Ogra) has issued a notification announcing that the price of RLNG for the consumers of Sui Northern Gas Pipeline Limited (SNGPL) has increased by $0.496 per MMBtu (3.87%) from last month. Similarly, the cost of RLNG for Sui Southern Gas Company (SSGC) consumers has increased by $0.508 per mmBtu (3.8%) compared to September prices.
“As per the policy guidelines of the federal government, OGRA has fixed RLNG prices for Sui gas companies, effective from October 1, 2023,” Ogra spokesperson said, adding that the increase in RLNG prices is in line with the increase. Has been held responsible for. RLNG Brent prices in the international market. It announced provisional prices for RLNG sales for October.
The weighted average selling price for Sui Northern Gas Pipeline Limited (SNGPL) consumers has been set at $13.3332 per million metric British thermal units (MMBtu), while Sui Southern Gas Company (SSGC) consumers will be charged $13.8716 per MMBtu.
In September, RLNG prices determined by OGRA were $12.8366 per MMBtu for SNGPL consumers and $13.3636 per MMBtu for SSGC consumers.
There was significant fluctuation in RLNG prices throughout the year. Ogra reduced RLNG prices seven times since January, increasing them twice in May, September and now October. The price began to decline in January, decreasing by 2.2%. This was followed by a decline of 4.3% in February, 3.16% in March and 0.47% in April. It increased by 1.3% in May 2023 but then decreased again in June (2.55%), July (1.5%), and August (1.3%). RLNG price had increased by 3.08% in September.
The recently revised prices for RLNG include several elements, such as charges for LNG terminals, transmission losses, port charges and margins for state-owned importers, namely Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL). .
They were determined on the basis of import of eight cargoes by PSO and one cargo by PLL.
In a notable development, Asian Platts JKM (Japan Korea marker) LNG price rose to $18.585 per mmBtu on October 23, 2023, an increase of 24% from the previous month when it stood at $14.99 on September 25, 2023. per mmBtu. Since August 25, 2022, (when the price of LNG peaked at $69.955/mmBtu), its price has decreased by $51.37/mmBtu or 73.4%. JKM is the LNG benchmark price valuation for spot physical cargo.
Pakistan depends on LNG imports to meet about one-third of its energy demands. However, when comparing RLNG prices in October 2023 with October 2022, costs for SNGPL consumers decreased by only 9.8%, while SSGC customers experienced a decrease of 8.65% during the year.