ISLAMABAD: The government reduced the average sale price of re-gasified liquefied natural gas (RLNG) for September 2024 on Thursday, lowering the rate of this super-chilled imported fuel by more than a percent. The cut comes amid soft international crude prices, with RLNG prices tied to oil.
The Oil and Gas Regulatory Authority (Ogra) said in a notification that RLNG prices for local consumers have been reduced by up to $0.16 per million British thermal units (mmBtu) due to a decrease in the delivered ex-ship (DES) price.
For Sui Northern Gas Pipelines Limited (SNGPL) customers, the price was reduced by $0.1505/mmBtu, or 1.07 per cent, while for Sui Southern Gas Company (SSGC) customers, the price dropped by $0.1568/mmBtu, or 1.15 per cent, compared to August 2024. In the previous month of August, the government had increased the RLNG price by 3.2 per cent.
The new weighted average sale price for SNGPL customers is set at $13.86/mmBtu, and $13.42/mmBtu for SSGC customers. In August, prices were $14/mmBtu for SNGPL and $13.577/mmBtu for SSGC customers.
Despite the reductions, RLNG prices are still 7.94 per cent higher for SNGPL and 0.425 per cent higher for SSGC customers compared to September 2023, when prices were $12.8366/mmBtu and $13.3636/mmBtu, respectively.
The revised RLNG prices account for charges related to LNG terminals, transmission losses, port fees, and margins for state-owned importers: Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL). The new rates are based on 10 cargoes imported by PSO, while PLL did not import any for the month.
PSO sources LNG through two long-term contracts with Qatar, purchasing six cargoes at a Brent slope of 13.37 per cent and four at 10.2 per cent.
Pakistan, which began importing RLNG in 2015, now relies on the fuel to meet nearly a third of its energy needs. Since September 2023, RLNG prices have fluctuated, with increases and decreases seen in nearly every month.
The Asian Platts Japan Korea Marker (JKM), the benchmark for spot LNG cargoes, was at $13.735/mmBtu as of September, down from its peak of $69.955/mmBtu in August 2022.