Govt slashes RLNG prices up to 5.2pc for June 2023

ISLAMABAD: The government on Thursday cut the re-gasified liquefied natural gas (RLNG) prices for both the Sui companies by up to $0.714 per MMBtu (or 5.22 percent) for the month of June, 2023. RLNG price for the Sui Northern Gas Pipelines Limited (SNGPL) consumers has been reduced by $0.6816 per MMBtu, while for Sui Southern Gas Company (SSGC) clients, prices have been decreased by $0.714 per MMBtu from the previous month (May 2023).According to the notification issued by Oil and Gas Regulatory Authority, RLNG weighted average sale provisional price has been set at $12.7181 per MMBtu for the consumers of SNGPL and $12.9429 per MMBtu for SSGC consumers. For the month of May 2023, the price of RLNG was $13.3997/mmBtu for the consumers of SNGPL and $13.6569/mmBtu for SSGC consumers.

The reduction in RLNG prices follows consecutive decreases implemented by the government in the past four months. However, in May, the average sale price of RLNG was raised by $0.1768 per MMBtu (1.3 percent) for consumers of both Sui companies. In January, RLNG prices were decreased by up to 2.2 percent, followed by a reduction of 4.3 percent in February and 3.16 percent in March, and in April it was reduced by 0.47 percent.

The newly adjusted RLNG prices include charges for LNG terminals, transmission losses, port charges, and margins of the state-run importers, Pakistan State Oil (PSO), and Pakistan LNG Limited (PLL). The prices were calculated based on the import of eight cargoes by PSO and one cargo by PLL. PSO procures LNG under two long-term contracts with Qatar, with prices set at 13.37 percent and 10.20 percent of Brent, respectively. The price of RLNG is closely linked to the price of crude oil, resulting in fluctuations in gas prices with changes in crude oil prices.