Gas crisis looms as line pack pressure hits dangerous level

New-RLNG

ISLAMABAD: The country’s system line pack has once again increased alarmingly to 5.070 billion cubic feet per day (bcfd), putting the whole gas transmission line under severe stress. This is mainly due to the lower utilisation of regulated liquefied natural gas (RLNG) by the power and industrial sectors. To decrease the line pack pressure, Sui gas companies are excessively diverting…

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“IMF Directive: Gas Tariff for Captive Power Plants to Align with RLNG Prices from July 1”

New-RLNG

Under directives from the International Monetary Fund (IMF), the government is preparing to equalize the gas tariff for captive power plants (CPPs) with Re-gasified Liquefied Natural Gas (RLNG) prices starting July 1, 2024. This move follows discussions with senior officials from the Energy Ministry, who highlighted the necessity of this adjustment in response to IMF requirements. Currently, the gas tariff…

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Govt to reconsider privatisation of LNG plants

LNG-chain

Ministerial group cites challenges, risks in circular debt-plagued power sect ISLAMABAD: The Ministerial Group has cautioned against the privatisation of two LNG power plants, citing concerns about the current investment climate. The government’s intention to privatise these plants, established during the Pakistan Muslim League-Nawaz’s tenure with an LNG contract signed with the government of Qatar, is under scrutiny. Sources reveal…

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RLNG Prices Increase After Two Monthly Reductions

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Ogra Raises RLNG Prices Due to Higher International Rates The Oil and Gas Regulatory Authority (Ogra) has announced an increase in the sale price of Regasified Liquified Natural Gas (RLNG) for Sui gas companies SSGCL and SNGPL, citing higher international prices. This hike comes after two consecutive monthly price cuts of 9% in February and 8% in January. For March,…

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Government Approves RLNG Supply for New Domestic Consumers

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In a move to address the diminishing local natural gas production, the outgoing caretaker regime has greenlit a policy allowing for the provision of Re-Gasified Liquefied Natural Gas (RLNG) to new domestic consumers and private housing societies. The decision, ratified by the Apex Committee of the Special Investment Facilitation Council (SIFC) in its 9th meeting, aims to tackle the challenge…

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Gas Price Hike Hits Unprotected Consumers Hard

LNG-import

In line with the federal cabinet’s decision, the Oil and Gas Regulatory Authority (OGRA) has announced a significant increase in natural gas prices effective from February 1, 2024, with unprotected consumers facing the brunt of the hike. Protected consumers will experience a gradual increase in tariff slabs, ranging from Rs. 80 to Rs. 100 per Million British Thermal Units (MMBtu),…

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Regulator Reduces RLNG Prices for February Due to Lower International Prices

lng

In response to significant system losses and decreasing international prices, the Oil and Gas Regulatory Authority (Ogra) has announced a reduction in the sale price of Regasified Liquefied Natural Gas (RLNG) for Sui Southern Gas Company Ltd (SSGCL) and Sui Northern Gas Pipelines Ltd (SNGPL) for the current month, effective Feb 1. This marks the second consecutive month of decline…

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

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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:…

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INDUSTRIES AT VERGE OF CLOSURECaretaker setup made highest hike of 191 percent in Industrial Gas tariff: President KCCI

gas-supply

KARACHI: President Karachi Chamber of Commerce and Industry (KCCI) Iftikhar Ahmed Sheikh has said that the caretaker setup has surpassed the elected Governments in terms of raising industrial gas tariff which has been raised by 118 percent since August 2023 from Rs1100 per MMBtu to Rs 2400 per MMBtu whereas further 40 percent addition of RLNG cost has taken gas…

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