Pakistan cuts regasified LNG prices by 20% — Dawn

In Pakistan, the Oil and Gas Regulatory Authority (Ogra) reduced September prices for regasified liquefied natural gas (RLNG) at the distribution stage by about 20%. The decision was linked to the arrival of two cheaper liquefied natural gas cargoes from Qatar, Dawn reports.

Prices for SNGPL and SSGCL

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 in September decreased by 19.99%, to $13.99 per million British thermal units (mmBtu), 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.

For Sui Southern Gas Company Limited (SSGCL), which serves consumers in Sindh and Balochistan, the sale price at the transmission stage declined by 21.53%, from $16.07 to $12.611 per mmBtu. At the distribution stage, it decreased by 21.57%, from $18.13 to $14.22 per mmBtu.

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Cost of LNG cargoes

The average delivered-ex-ship price of LNG for two September cargoes was $10.06 per mmBtu. In August, this figure was $12.12, while in July it was $18.96 per mmBtu.

In July, Pakistan urgently purchased five more expensive LNG cargoes on the international spot market amid supply disruptions that the publication links to the war between the United States and Iran. According to Dawn, the current decrease in RLNG prices may reduce fuel costs for electricity generation.

The RLNG price at the distribution stage exceeds the average LNG delivery price. The publication explains this by markups charged by LNG importers — PSO and Pakistan LNG Limited — and port authorities, as well as losses in gas networks. SSGCL's losses at the distribution stage amount to 12.55%, while SNGPL's stand at 8.97%.