Pakistan RLNG Prices Soar by Up to 34.6% Amid Ongoing Middle East Conflict

The Oil and Gas Regulatory Authority (Ogra) has raised the prices of re-gasified liquefied natural gas (RLNG) by up to 34.6% for July 2024, affecting consumers across Pakistan.

The decision was made due to the country receiving only five LNG cargoes in July, which is the third-lowest monthly import volume since Pakistan began importing RLNG. This scarcity has driven prices higher on the international spot market.

Customers of Sui Southern Gas Company (SSGC) in the south will bear the brunt of the price hike, with rates increasing by $6.4512 per million British thermal units to $25.087, a 34.6% rise. In contrast, consumers of Sui Northern Gas Pipelines Limited (SNGPL) in the north will see prices jump by $6.316, or 32.35%, to $25.8388 per MMBtu.

The RLNG prices have surged more than 144% since the war erupted in the Middle East on February 28, making it difficult for Pakistan to access cheaper LNG supplies from Qatar due to force majeure declared by QatarEnergy after drone strikes hit their energy infrastructure on March 2. As a result, the country will likely continue buying expensive RLNG from the spot market, placing further pressure on consumers.