On Wednesday, the Oil and Gas Regulatory Authority (OGRA) announced an increase in the prices of re-gasified liquefied natural gas (RLNG) for consumers of both Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC).
Effective from March 1, 2024, the new prices reflect a rise of $0.332 per million British thermal units (mmBtu), constituting a 2.58 percent increase for SNGPL customers. Similarly, SSGC consumers will face a hike of $0.0979 per mmBtu, amounting to a 0.75 percent increment compared to February 2024 prices. In February, prices were reduced by up to $1.2867 per mmBtu, marking a 9 percent decrease.
Under the revised pricing structure, the weighted average sale price for SNGPL consumers is set at $12.814 per mmBtu, while SSGC consumers will be charged $13.056 per mmBtu. This contrasts with February 2024 prices of $12.492 and $12.9584 per mmBtu for SNGPL and SSGC consumers, respectively.
Since September 2023, RLNG prices have seen fluctuations, with only two months experiencing cuts. Notably, there was a 3.08 percent increase in September, followed by rises in October (3.87 percent), November (1.2 percent), and a significant spike in December (10.1 percent). January 2024 witnessed a reduction of 7.8 percent, followed by a 9 percent decrease in February. The recent increase in March prices comes amidst a global decline in LNG prices, with April delivery into northeast Asia dropping to $8.60 per mmBtu last week, its lowest level since April 2021.
The revised RLNG prices encompass various elements including charges for LNG terminals, transmission losses, port charges, and margins for state-owned importers like 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.
