OGRA reduces RLNG prices for March

Transmission, distribution losses increase to 11.12%

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has reduced prices of re-gasified liquefied natural gas (RLNG) for March 2019.

However, transmission and distribution losses have been increased from 8.07% to 11.12% for RLNG consumers, up $0.30 per million British thermal units (mmbtu).

At 8.07%, the transmission and distribution losses for Pakistan State Oil (PSO) should be $0.7027 whereas they are $1.0923. Similarly, for Pakistan LNG Limited (PLL), the losses should have been $0.7311 but they are $1.0073.

The regulator fixed the RLNG price for consumers of Sui Northern Gas Pipelines Limited (SNGPL) at $10.3042 per mmbtu and for consumers of Sui Southern Gas Company (SSGC) at $10.2543 per mmbtu for March 2019. For February 2019, the price was $10.5993 per mmbtu for the SNGPL consumers and $10.9062 per mmbtu for the SSGC consumers.

The new prices for March 2019 have been reduced by 2.78% (or $0.295 per mmbtu) for SNGPL and 5.977% (or $0.6519 per mmbtu) for SSGC compared to prices in February 2019. Last month, the government reduced RLNG prices for SNGPL consumers by 3.97% and for SSGC consumers, they were slashed by 4.10%.

The price of this super-cooled gas is pegged with crude oil prices and it is expected that due to decline in international oil prices, local consumers of RLNG will get a sizable relief.

These prices also include charges of LNG terminals, transmission losses, port charges and margins of importers ie PSO and PLL.

The new RLNG weighted average sale prices for March 2019 have been computed based on 10 cargoes imported during the month, of which six were imported by PSO and four by PLL.

Published in The Express Tribune, March 5^th, 2019.

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