Pakistan Cuts RLNG Prices by 20% Amid Cheaper LNG Imports

Pakistan's Oil and Gas Regulatory Authority (Ogra) has reduced the prices of regasified liquefied natural gas (RLNG) by about 20% for September, in line with the arrival of two cheaper LNG cargoes from Qatar. This decision will affect the RLNG sale price at the distribution stage.

For Sui Northern Gas Pipelines Limited (SNGPL), which supplies gas to consumers in Punjab and Khyber Pakhtunkhwa, the RLNG sale price at the transmission stage decreased by 19.99% to $13.99 per million British thermal units (mmBtu) in September, from $17.49 in August. At the distribution stage, the price for SNGPL fell by 20.14%, from $19.02 to $15.196 per mmBtu.

The average delivered-ex-ship price of LNG for two September cargoes was $10.06 per mmBtu, down from $12.12 in August and $18.96 in July. This decrease may reduce fuel costs for electricity generation, as the RLNG price at the distribution stage exceeds the average LNG delivery price.