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Saturday April 13, 2024

RLNG prices up by over 2pc for SNGPL, marginal rise for SSGC

The new prices took effect on March 1, 2024

By Israr Khan
March 21, 2024
A liquefied natural gas (LNG) container arrives at a storage station in east of Tokyo, Japan. — AFP/File
A liquefied natural gas (LNG) container arrives at a storage station in east of Tokyo, Japan. — AFP/File

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) on Wednesday increased the prices of re-gasified liquefied natural gas (RLNG) by $0.332 per million British thermal units (mmBtu), or 2.58 percent, for consumers of Sui Northern Gas Pipelines Limited (SNGPL) and by $0.0979 per mmBtu, or 0.75 percent, for Sui Southern Gas Company (SSGC) customers.

The new prices took effect on March 1, 2024. Under the new pricing structure, consumers of Sui Northern Gas Pipelines Limited (SNGPL) will face an increase of $0.332 per mmBtu (or 2.58 percent) compared to the previous month.

Similarly, consumers of Sui Southern Gas Company (SSGC) will experience a hike of $0.0979

per mmBtu (or 0.75 percent) from February 2024 prices. In the previous month of February, prices were reduced by up to $1.2867 per mmBtu (or 9 percent).

The weighted average sale price for SNGPL consumers has been set at $12.814 per mmBtu, while SSGC consumers will be charged $13.056 per mmBtu.

This compares to February 2024 prices of $12.492 and $12.9584 per mmBtu for Sui Northern Gas Pipelines Limited and SSGC consumers, respectively. Since September 2023, only two months saw a cut in RLNG prices. Notably, September 2023 saw a 3.08 percent increase, followed by a 3.87 percent increase in October, a 1.2 percent increase in November, and a significant 10.1 percent increase in December.

January 2024 saw a reduction of 7.8 percent, followed by a 9 percent decrease in February. Now, for March again, the prices have been increased. The revised re-gasified liquefied natural gas prices include various elements such as charges for LNG terminals, transmission losses, port charges, and margins for state-owned importers, namely Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL).

These prices were determined based on the import of nine cargoes by PSO and one cargo by PLL. The announcement comes amid a sharp decline in LNG prices globally, with LNG for April delivery into northeast Asia dropping to $8.60 per mmBtu last week, marking its lowest point since April 2021.