Representational image. PHOTO: REUTERS
The regulator increased the prices of re-gasified liquefied natural gas (RLNG) by 6.43% for Sui Northern Gas Pipelines Limited (SNGPL) and 6.62% for Sui Southern Gas Company (SSGC) compared to the previous month.
Ogra fixed the new prices at $10.723 per million British thermal units (mmbtu) for SNGPL consumers and $10.7105 per mmbtu for SSGC consumers. In the previous month, the RLNG price for SNGPL was $10.0751 per mmbtu and for SSGC, it was $10.0457 per mmbtu.
In absolute terms, RLNG prices have been increased by $0.6479 per mmbtu for SNGPL and $0.6648 per mmbtu for SSGC.
These prices also include charges for LNG terminals, transmission losses, port charges and margins of importers ie Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL).
The new weighted average sale prices for RLNG have been calculated based on the nine cargoes imported for the month of September, of which six cargoes were imported by PSO and three by PLL.
In Pakistan, LNG is imported and pegged with the international oil prices, hence, with the increase in global oil prices, RLNG prices have also been hiked.
Since RLNG has been the second major contributor to the power generation mix after hydel resources, with the increase in RLNG prices, the cost of energy will also rise, which will then be charged from power consumers.
According to National Electric Power Regulatory Authority (Nepra) data, in August 2019, power generation with the help of RLNG came in at 3,216 gigawatt-hours with 22.89% share in the energy mix.
In the month, the per-unit generation cost was calculated at Rs11.499 while in July the share of RLNG-based power was 24.7% with a cost of Rs11.172 per unit.
Published in The Express Tribune, October 10th, 2019.
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