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The Oil and Gas Regulatory Authority (Ogra) has notified on Monday an increase in the weighted average price of imported Re-gasified Liquefied Natural Gas (RLNG) for March.

The regulator has increased the prices of RLNG for the month of March for the Sui Northern Gas Pipelines Limited (SNGPL) and the Sui Southern Gas Company (SSGC) over February 2020.

The oil and gas regulator notified the RLNG prices by setting the new weighted average price without the GST at $10.2161 per mmbtu for the consumers of the SNGPL and $9.8084 per mmbtu for the SSGC.

In February, the RLNG price for SNGPL was $10.0644/mmbtu, and for the SSGC, it was $9.6589/mmbtu.

In absolute terms, the RLNG prices have been increased by $0.1517/mmbtu for the SNGPL and 0.1495/mmbtu for the SSGC.

The cost of the RLNG at distribution stage has been computed by the OGRA at $11.3670 per mmbtu for the SNGPL.

The SSGCL network has been allowed to charge at distribution $11.3681 per mmbtu. These prices also include charges of the LNG terminals, transmission losses, port charges, and margins of the importers i.e. the Pakistan State Oil (PSO) and the Pakistan LNG Limited (PLL).

These new weighted average sale prices of the RLNG have been computed based on the eight cargoes imported for the month including six cargoes by the PSO and two by the Pakistan LNG Limited (PLL).

Since, the RLNG has been a 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.

Copyright Business Recorder, 2020

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