Ogra Increases Price of RLNG for May 2023

Oil and Gas Regulatory Authority (OGRA) on Thursday increased price of RLNG for May 2023 up to $ 0.17 per MMBtu for consumers of two gas utilities.

Pakistan has been importing LNG since 2015 in order to bridge the demand of local consumers.

The oil and gas regulator notifies the prices of LNG on monthly basis for consumers of gas.

The regulator computed $13.3997 per MMBtu and $13.6569 per MMBtu RLNG weighted average sale price without general sale tax (GST) for consumers of Sui Northern Gas Pipeline Limited (SNGPL) and Sui Southern Gas Company (SSGC) consumers respectively. Ogra Sets Transportation Tariff for LNG Shippers

The increase for SNGPL’s consumers is $0.1681 per mmbtu and for SSGCL, the price is increased by $0.1768 per mmbtu.

The RLNG price is computed on eight cargos imported from Qatar under long term agreements at 13.37 percent and 10.20 percent of Brent.

While PLL purchased two cargos at 12.14 percent of Brent. The DES price under long term has been determined at $10.3746 per mmbtu and $9.9604 per mmbtu on spot purchase.

The average cost of supply has been taken on provisional basis as per RERR- fiscal year 2022-23.

The major portion of LNG comes from Qatar on contract basis. The contract was signed during PML-N regime in 2015.

The original plan to provide imported gas to commercial, industry, CNG and power consumers.

But the imported gas was also diverted to domestic consumers during winter season that had resulted in piling up circular debt in gas sector.