RLNG prices cut by 7.1pc for this month

While October prices are lower than those of previous month, they remain slightly higher compared to same period last year

By Israr Khan
October 12, 2024
A representational image showing an aerial view of an LNG carrying ship at sea. — AFP/File
A representational image showing an aerial view of an LNG carrying ship at sea. — AFP/File

ISLAMABAD: The government on Friday reduced average sale price of re-gasified liquefied natural gas (RLNG) for October 2024, lowering cost of super-chilled imported fuel by up to 7.11 percent against prices of last month.

In a notification, Oil and Gas Regulatory Authority (Ogra) announced the reduction, citing a decrease in delivered ex-ship (DES) price as primary reason for adjustment. The DES price reflects cost of delivering LNG to Pakistan’s shores, which is a significant factor in determining local RLNG prices.

For consumers served by Sui Northern Gas Pipelines Limited (SNGPL), the price has been cut by $0.9167 per million British thermal units (mmBtu), or 6.62pc. Meanwhile, customers of Sui Southern Gas Company (SSGC) will see a price reduction of $0.9546/mmBtu, or 7.11pc when compared to September 2024.

The new weighted average sale price for SNGPL customers is set at $12.939/mmBtu, while SSGC customers will pay $12.4659/mmBtu. This is down from September’s prices of $13.856/mmBtu for SNGPL and $13.4205/mmBtu for SSGC customers, marking a continuation of price cuts following a smaller reduction of 1.07pc in September.

While the October prices are lower than those of previous month, they remain slightly higher compared to same period last year. In October 2023, SNGPL consumers paid $13.333/mmBtu and SSGC customers were charged $13.8716/mmBtu.