Ministry of Energy Shares Spot LNG Price Forecasts with Utilities Amid Concerns Over Outstanding Dues


The Ministry of Energy (Petroleum Division) has disseminated spot LNG price projections to Sui gas companies, the National Transmission and Despatch Company (NTDC), and the Central Power Purchasing Agency-Guaranteed (CPPA-G) until September 2024.

As per projections by M/s Pakistan LNG Limited (PLL), the anticipated spot LNG prices from March to September 2024 are: March-April: $9.43/MMBTU, May: $8.81/MMBTU, June: $8.39/MMBTU, July: $7.56/MMBTU, August: $7.37/MMBTU, and September: $8.35/MMBTU. These forecasts, provided by S&P Global on January 24, 2024, are subject to market fluctuations.

The NTDC has shared tentative RLNG demand figures for the power sector from March to December 2024. However, due to demand variability influenced by factors like weather conditions and merit order, the National Power Control Centre (NPCC) can only offer approximate RLNG requirements.

SNGPL has cautioned about potential fluctuations in power sector RLNG demand compared to previous years, highlighting the challenges it poses in gas allocation. SNGPL stresses the importance of firm demand commitments from the power sector to ensure efficient RLNG utilization and mitigate losses.

The Power Division has urged for firm month-wise offtake commitments from NTDC/NPCC for March-December 2024 to facilitate accurate RLNG allocation by SNGPL to PLL.

Meanwhile, SNGPL has raised concerns over outstanding dues from the power sector, amounting to Rs. 181 billion, adversely affecting its financial stability and upstream gas supply commitments.

To maintain the integrity of the gas/RLNG supply chain and prevent potential default on international obligations, timely clearance of outstanding dues from the power sector is emphasized, along with the provision of clear repayment timelines.

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