Tag: RLNG

Govt Eyes Rs55bn Windfall from Gas Tariff Hike for CPPs

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OGRA-GAS

ISLAMABAD: The government is set to collect over Rs55 billion in prior year adjustments (PYA) during FY25, following a Rs500/MMBtu increase in gas tariffs for captive power plants (CPPs), aligning with IMF-mandated reforms. The tariff hike from Rs3,000/MMBtu to Rs3,500/MMBtu has pushed the weighted average gas tariff to Rs1,722/MMBtu, with an expected annual average of Rs1,689/MMBtu, according to Hamdan Ahmed, an analyst at Optimus Capital Management. The Oil and Gas Regulatory Authority (OGRA) has also based its revenue estimates on an assumed oil price of $81.8/bbl, higher than the FYTD25…

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SNGPL Seeks Petroleum Division’s Intervention on Gas Cost Equalisation and RLNG Financing

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SNGPL-Office

ISLAMABAD: Sui Northern Gas Pipelines Limited (SNGPL) has called on the Petroleum Division for urgent support to finalise a gas cost equalisation arrangement with Sui Southern Gas Company Limited (SSGC) and to include the full financing cost of short-term RLNG borrowings in the RLNG price structure to ensure cost recovery. In a letter to the Director General (Gas) at the Petroleum Division, SNGPL’s Chief Financial Officer (CFO) reaffirmed the company’s commitment to meeting its financial obligations, including payments to Pakistan State Oil (PSO). The letter highlighted that accumulated payment shortfalls…

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OGRA Notifies Adjusted RLNG Prices for January Amid Rising System Losses

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OGRA

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has announced revised Regasified Liquefied Natural Gas (RLNG) prices for January, reflecting a slight decrease for Sui Northern Gas Pipelines Ltd (SNGPL) and an increase for Sui Southern Gas Company (SSGCL), amidst record-high system losses. Karachi-based SSGCL, serving Sindh and Balochistan, saw its system losses surge to 16.16% from 13% last month. Lahore-based SNGPL, supplying Punjab and Khyber Pakhtunkhwa, recorded an increase in losses to 8.6% from 8%. For SNGPL, the RLNG sale price at the transmission stage was reduced by 1.98%…

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RLNG Diversion to Domestic Sector Rises to 450 mmcfd, Worsening Gas Circular Debt

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LNG

ISLAMABAD: The diversion of Re-gasified Liquefied Natural Gas (RLNG) to the domestic sector has surged to 450 million cubic feet per day (mmcfd) in January 2025, up from 250 mmcfd in December 2024, within Sui Northern’s jurisdiction. This increase significantly exacerbates the circular debt in the gas sector. The current domestic gas tariff averages Rs1,250 per MMBTU, while the RLNG tariff is Rs3,600 per MMBTU, creating a loss delta of Rs2,350 per MMBTU. A senior Petroleum Division official estimates the diversion loss from November 2024 to March 2025 at over…

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SNGPL Sends SOS to Petroleum Division Over Power Sector’s RLNG Payment Shortfall

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New-RLNG

ISLAMABAD: Sui Northern Gas Pipelines Limited (SNGPL) has issued an urgent appeal to the Petroleum Division, highlighting severe financial challenges due to underpayment by the power sector for RLNG supplies. Sources reveal that SNGPL has approached the Directorate General of Gas, outlining difficulties in meeting its payment obligations for RLNG and indigenous gas supplies. Since the gas price revision in November 2023, SNGPL has disbursed Rs1,093 billion to Pakistan State Oil (PSO). However, in September 2024, SNGPL expects a payment shortfall of Rs22 billion due to reduced demand from the…

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