OGRA notifies reductions in price of RLNG for January

Published: January 14, 2020
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 PHOTO: REUTERS

PHOTO: REUTERS

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Monday notified a reduction in prices of re-gasified liquefied natural gas (RLNG) for January 2020.

The regulator has reduced RLNG prices for Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) for January 2020 compared to December 2019.

The oil and gas regulator set the new price at $10.4822 per million British thermal units (mmbtu) for SNGPL consumers and $10.4602 per unit for SSGC. In the previous month, the RLNG price for SNGPL was $10.8349 per mmbtu and for SSGC, it was $10.8234 per mmbtu. In absolute terms, RLNG prices have been slashed by $0.352 per mmbtu for SNGPL and $0.363 per mmbtu for SSGC.

The cost of RLNG at the transmission stage has been computed by Ogra at $9.4245 per mmbtu for SNGPL. The authority has allowed SNGPL to charge extra $1.057 per unit at the distribution stage.

The cost of RLNG at the distribution stage has been computed by the regulator at $10.4602 per mmbtu for SSGC. The authority has allowed SSGC collection of $9.0269 per mmbtu at the transmission stage.

These prices also include LNG terminal charges, transmission losses, port charges and margins of importers ie Pakistan State Oil (PSO) and Pakistan LNG Limited.

The new weighted average sale prices of RLNG have been computed based on the eight cargoes imported in the month including six cargoes by PSO and two by Pakistan LNG.

Since RLNG has been the second major contributor to power generation after hydel resources, with the decrease in RLNG prices, the cost of energy also goes down, which is charged from consumers.

Published in The Express Tribune, January 14th, 2020.

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