Ogra reduces LNG prices by 20.5%

The Oil and Gas Regulatory Authority (OGRA) on Friday slashed the prices of imported re-gasified Liquefied Natural Gas (LNG) by up to 20.57 percent for the consumers of Sui Southern Gas Company Limited (SSGC) and Sui Northern Gas Pipeline Limited (SNGPL). 

The notification issued by the Oil and Gas Regulatory Authority (OGRA) said that for July, the prices of RLNG for SSGCL have been reduced by $4.6501 per Metric Million British Thermal Unit (MMBtu), while for SNGPL, it has been reduced by $3.3088 per Metric Million British Thermal Unit (MMBtu).

Weighted Average Cost of Gas reduced

The regulator decreased the weighted average gas sale price of imported RLNG by $4.6501/MMBtu, or 20.57pc, on the distribution network of Sui Southern Gas Company (SSGC).

After the cut, the price of RLNG will go down to $17.9575/MMBTU for July from $22.6076/MMBtu during June.

Similarly, the weighted average gas sale price of the SNGPL distribution network has decreased by 15.93pc. As a result, Ogra has slashed the price of RLNG on the SNGPL network to $3.3088.MMBtu.

With a reduction, the rate of RLNG will come down to $17.4603/MMBtu for July from the June price of $20.7691/MMBtu.

CNG Industry offers 53% Cheaper gas for Vehicles

According to OGRA, Pakistan State Oil had imported a total of eight LNG cargoes under two long-term contracts with Qatar. However, Pakistan LNG Limited (PLL) failed to procure any LNG cargo during July.

Pakistan is currently importing LNG from Qatar on a long-term basis. However, it has not been able to import LNG on a spot basis due to the higher global market.

Since the Russia-Ukraine war started, the price of LNG has gone up, pushing LNG prices also up in Pakistan due to spot buying.

The higher oil prices in the global market have also increased LNG prices, making it an unaffordable commodity for Pakistani consumers.

However, the prices of LNG from Qatar are affordable due to capping.