Regulator raises RLNG prices

ISLAMABAD: With system losses at a massive 13.14 per cent, the Oil and Gas Regulatory Authority (Ogra) on Tuesday notified up to 3.20pc increase in the sale price of Regasified Liquefied Natural Gas (RLNG) for two Sui gas companies for the current month with effect from August 1 owing to higher international prices.
The RLNG’s sale price for Lahore-based Sui Northern Gas Pipelines Ltd (SNGPL) at the transmission stage has been raised by 2.95pc to $13.06 per million British thermal unit (mmBtu) for August against $12.68 in July. The sale price at the distribution stage for SNGPL was increased by 2.97pc to $14.01 per mmBtu for August from $13.60 per unit in July.
Likewise, the RLNG sale price for Karachi-based Sui Southern Gas Company Ltd (SSGCL) has been increased at the transmission stage by 3.19pc to $11.89 per mmBtu against $11.53 in July. The sale price at the distribution stage for the company was increased by 3.20pc to $13.58 per mmBtu for August against $13.15 last month.
The overall increase in absolute terms for SSGC’s transmission price amounted to $0.368 per mmBtu and $0.42 per unit at the distribution point. The increase in RLNG price for SNGPL at transmission stood at $0.37 per mmBtu and $0.401 per unit for distribution.
Ogra said the SSGCL’s transmission and distribution system losses, commonly described as unaccounted for gas (UFG), stood at 13.14pc, slightly down from 14.5pc last year. On the other hand, the system loss of SNGPL surged to 9.65pc when compared to 8.61pc last year.
Ironically, the RLNG distribution prices for SSGCL $13.58 per mmBtu and $14.01 per mmBtu for SNGPL are almost $2.61 and $3.04 per mmBtu higher than Pakistan State Oil’s $10.97 per mmBtu average delivered price ex-ship (DES), respectively.
This is mainly because of the fact that both the LNG importers — PSO and PLL — also charge profit margins on account of retainage and margins at the rate of 3.15pc and 3.1pc of DES price, respectively, on top of 9.65pc losses of SNGPL and 13.14pc losses of SSGCL.
The basket RLNG price was based on a total of 11 cargos for August. These included 10 cargos under the two LNG contracts with Qatar at an average of $10.08 per mmBtu — six cargos at $11.13 and four cargos at $8.5 per mmBtu. Another cargo imported by Pakistan LNG Ltd (PLL) was delivered ex-ship at $10.10. As such PSO’s average price for nine cargos stood lower than that of PLL.
Ogra said it had increased the prices in line with policy guidelines issued by the federal government through the Ministry of Energy.
Published in Dawn, August 14th, 2024