OGRA raises LNG prices by up to 6.35%

Notifies increase for July following fluctuations in global prices

ISLAMABAD:

The Oil and Gas Regulatory Authority (Ogra) on Wednesday hiked prices of liquefied natural gas (LNG) by up to 6.35% for July 2020 following fluctuations in global prices.

The regulator notified the increase of 5.65% in the price of re-gasified liquefied natural gas (RLNG) for Sui Northern Gas Pipelines Limited (SNGPL) for July 2020 and 6.35% for Sui Southern Gas Company (SSGC) over the previous month. Ogra notified the RLNG prices by setting the new price at $6.475 per million British thermal units (mmbtu) for consumers of SNGPL and $6.67 per unit for SSGC consumers.

Last month, the RLNG price for SNGPL was $6.1284 per mmbtu and for SSGC it was $6.2716 per mmbtu. In June, the government had slashed the price of RLNG by 18.4% for SNGPL and 19.1% for SSGC.

The new notified prices of RLNG also include charges of 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 of RLNG have been computed based on the nine cargoes imported in the month including six cargoes by PSO and three by PLL. Economists say since January RLNG prices have dropped substantially, which will help boost industrial sector’s performance and will also bring down the inflation rate.

Published in The Express Tribune, July 16^th, 2020.

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