Islamabad: The Oil and Gas Regulatory Authority (OGRA) on Monday notified a reduction in prices of imported Re-gasified Liquefied Natural Gas (RLNG) for January, 2020.
The regulator has decreased the prices of RLNG for the month of January 2020 for Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) over December 2019. The Oil and Gas regulator notified the reduction in RLNG prices at $10.4822 per mmbtu for the consumers of SNGPL and $10.4602 per mmbtu for SSGC.
In previous month of December 2019, the RLNG price for SNGPL was $10.8349 per mmbtu and for SSGC, it was $10.8234/mmbtu. In absolute terms, RLNG prices have been slashed by $0.352/mmbtu for SNGPL and 0.363/mmbtu for SSGC.
The cost of RLNG at transmission stage has been computed by OGRA at $9.4245 per mmbtu for SNGPL. The authority has allowed SNGPL to charge $1.057 per mmbtu extra at distribution stage. The cost of RLNG at distribution stage has been computed by OGRA at $10.4602 per mmbtu for SSGCL. The authority has allowed charging at transmission stage of SSGCL at $9.0269 per mmbtu.
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 of RLNG have been computed, based on the eight cargoes imported for the month including six cargoes by PSO and two by Pakistan LNG Limited (PLL).
Since RLNG has been the second major contributor in power generation after hydel sources, so with the increase of the RLNG prices, the cost of energy also increases and which is then charged from power consumers.