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October 10, 2019

RLNG price increased over 6pc for October

Business

October 10, 2019

ISLAMABAD: The government has increased the prices of Re-gasified Liquefied Natural Gas (RLNG) for the month of October by 6.43 percent for Sui Northern Gas Pipelines Limited (SNGPL) and 6.62 percent for Sui Southern Gas Company (SSGC) over the previous month,

a notification said on Wednesday.

Interestingly, 11 LNG cargoes were imported for September, while nine were sourced for October 2019. The Oil and Gas Regulatory Authority (OGRA) notified the new prices at $10.723 per mmbtu for the consumers of the SNGPL and $10.7105 per mmbtu for the SSGC.

In September, the price for the SNGPL was $10.0751/mmbtu and for the SSGC, it was $10.0457/mmbtu. In absolute terms, the RLNG rates have been increased by $0.6479/mmbtu for the SNGP and $0.6648/mmbtu for the SSGC.

These prices also include charges of the LNG terminals, transmission losses, port charges, and margins of the importers i.e. Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL).

These new weighted average sale prices have been computed, based on the nine cargoes imported for the month including six cargoes by Pakistan State Oil and three by the PLL. The LNG is an imported product and pegged is with the international oil prices, so with the increase in oil prices, its price also increased.

Since, RLNG is the second major contributor in power generation after hydroelectric sources, so a jump in its prices increases the cost of energy and subsequently power consumers have to pay for it.

According to National Electric Power regulatory Authority (NEPRA) data, in August 2019, power generation from RLNG was 3,216 GWh having 22.89 percent share in overall pie of power generation from all sources.

In August 2019, the per unit generation cost was Rs11.499 / unit, while in July the RLNG-based power share was 24.7 percent costing Rs11.172/unit.

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