OGRA notifies increase in prices of imported RLNG for November

The Oil and Gas Regulatory Authority (OGRA) on Tuesday notified an increase in prices of imported Re-gasified Liquefied Natural Gas (RLNG) for November, 2019 in its monthly review.

The regulator has increased the prices of RLNG for the month of November for Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company (SSGC) over October 2019. The Oil and Gas regulator notified the RLNG prices by setting the new prices at $10.9460 per mmbtu for the consumers of SNGPL and $10.9385 per mmbtu for SSGC. In previous month of October, the RLNG price for SNGPL was $10.723/mmbtu and for SSGC, it was $10.7105/mmbtu. In absolute terms, RLNG prices have been increased by $0.223/mmbtu for SNGPL and 0.228/mmbtu for SSGC.

The cost of RLNG at distribution stage has been computed by OGRA at $8.8937 per mmbtu for SNGPL. The authority has allowed charging consumers of SNGPL $2.0523 per mmbtu to meet the other expenses. The cost of RLNG at distribution stage has been computed by OGRA at $8.8937 per mmbtu for SSGCL. The authority has allowed charging consumers of SSGCL $2.0448 per mmbtu to meeting the other expenses.

These prices also include charges of the LNG terminals, transmission losses, port charges, and margins of the importers i.e. Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL). These new weighted average sale prices of RLNG have been computed, based on the eight cargoes imported for the month including six cargoes by PSO and two by Pakistan LNG Limited (PLL).

LNG is an imported product and pegged with the international oil prices, so with the increase in oil prices, this product's price has also been increased. Since RLNG has been the second major contributor in power generation after hydel sources, so with the increase of the RLNG prices, the cost of energy also increases and which is then charged from power consumers.