RLNG price cut by up to 2.72% for this month

ISLAMABAD: The government on Friday reduced average sale price of re-gasified liquefied natural gas (RLNG) for December 2024, lowering cost of super-chilled imported fuel by up to 2.72 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.

The price of this imported gas has been reduced for consumers of both Sui Companies, effective December 1, 2024, offering a reprieve for industries and households relying on natural gas during the winter season.

The revised prices will impact the Sui Northern Gas Pipelines Limited (SNGPL) and the Sui Southern Gas Company Limited (SSGCL) networks.

For SNGPL consumers, the transmission price will decrease by 3.26 per cent, falling to $11.9659 per MMBtu. The distribution price will also be reduced by 2.72 per cent, now set at $12.8997 per MMBtu. Similarly, for SSGCL consumers, the transmission price will drop by 6.02 per cent, to $10.5415 per MMBtu, while the distribution price will decrease by 1.99 per cent, standing at $12.5456 per MMBtu.

This reduction is seen as a significant relief for consumers and industries that are heavily dependent on natural gas, especially during the peak winter months when energy demand typically surges. Ogra attributed the price drop to a decline in global LNG market trends and shipping costs that have impacted DES prices.

RLNG continues to be a critical part of Pakistan’s energy mix, supplying power generation, industrial operations, and commercial usage. The price reduction is expected to provide financial relief to sectors and households that use RLNG as a primary energy source, easing some of the pressure during the colder months when energy consumption is at its highest.