Govt cuts LNG prices up to 4.3pc for Feb 2023

Amid soft global wholesale gas prices, Pakistan’s Oil and Gas Regulatory Authority (Ogra) has cut the average sale price of Re-gasified liquefied natural gas (RLNG) by up to 4.3 percent for February 2023.

The RLNG price for the Sui Northern Gas Pipeline Limited (SNGPL) consumers was reduced by 4.3 percent or $0.614/mmBtu, while for Sui Southern Gas Company (SSGC) clients, prices have been cut by 3.9 percent (or $0.5635/mmBtu) over the previous month (January 2023).

The regulator issued it determined RLNG weighted average sale provisional price notice on Monday. It set RLNG prices at $13.7046/mmBtu for the consumers of SNGPL and $13.952/mmBtu for SSGC clients.

The Asian Platts JKM (Japan Korea Marker) LNG price fell to a near one-and-a-half-year low on Friday 2023 to $17.9/mmBtu, as this level was last seen on August 31, 2021. Likewise, since August 25, 2022, (when the LNG price peaked at $69.955/mmBtu), its price has reduced by $52/mmBtu or 74.4 percent. JKM is the LNG benchmark price assessment for the spot physical cargoes. Similarly, in one month, its price reduced from $29.345/mmBtu on January 3, 2023, to $17.9/mmBtu now.

Because of a fall in wholesale gas prices in the global market, the prices in the region were also reduced. Pakistan is meeting nearly a third of its energy demands through the imports of this super-chilled fuel.

Since May 2022, the government has been reducing the RLNG prices for local consumers. According to the data, in May 2022, the RLNG price in the local market was the highest ($21.8317/mmBtu for SNGPL and $23.7873/mmBtu for SSGC) since Pakistan started importing LNG in 2015.

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