Pakistan's OGRA Slashes RLNG Prices After Cheaper Qatar Cargoes

Ogra has reduced the price of regasified liquefied natural gas (RLNG) by 20% for sales at the distribution stage by the two Sui gas companies, mainly due to cheaper Qatar cargoes received in September.

The RLNG sale price for SNGPL fell by 19.99% to $13.99 per mmBtu in September from $17.49 per mmBtu in August. Similarly, the SNGPL sale price dipped by 20.14% to $15.196 per mmBtu in September against $19.02 per mmBtu in August.

The cheaper cargoes led to an average delivered price ex-ship of LNG for two cargoes in September standing at $10.06 per million British thermal unit (mmBtu), compared with $12.12 per mmBtu in August and $18.96 per mmBtu in July.

The reduction is expected to lower fuel costs for power generation, but system losses at the distribution stage remain high, with SSGCL's standing at 12.55% compared to about 10.6% last year.