ISLAMABAD: The federal government on Monday reduced re-gasified liquefied natural gas (RLNG) prices by up to 5.9 per cent for December, offering modest relief to consumers of both state-owned gas utilities.
The Oil and Gas Regulatory Authority (Ogra) notified the revised rates, attributing the reduction to a decline in the delivered ex-ship price of imported LNG. The price cut applies to consumers of Sui Northern Gas Pipelines Ltd (SNGPL) and Sui Southern Gas Company Ltd (SSGCL).
Under the new rates, RLNG prices for SNGPL consumers were lowered by 4.6 per cent compared to November, while SSGCL consumers received a steeper reduction of 5.9 per cent.
For SNGPL, the transmission price declined by $0.5119 per million British thermal units (MMBtu), or 4.48 per cent, to $10.9186 per MMBtu from $11.4305 in November. The distribution price was cut by $0.5716 per MMBtu, or 4.6 per cent, to $11.828 from $12.3996.
SSGCL consumers saw a sharper decrease, with the transmission price falling by $0.591 per MMBtu, or 5.87 per cent, to $9.474 from $10.065, while the distribution rate dropped by $0.675 per MMBtu, or 5.9 per cent, to $10.7767 from $11.45.
Ogra said the revised prices include terminal charges, transmission losses, port handling costs and margins for Pakistan State Oil (PSO), the state-owned LNG importer.
The weighted average sale prices were calculated based on 10 LNG cargoes imported by PSO under its two long-term supply agreements with Qatar. Of these, six cargoes were procured at a higher pricing slope of 13.37 per cent of Brent crude prices, while four cargoes were priced at a lower slope of 10.20 per cent of Brent.
RLNG is primarily consumed by industrial, commercial and power sector users, and the December price adjustment is expected to provide limited but positive relief to energy costs, particularly for gas-based industries dependent on imported fuel.
Story by Israr Khan
