ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has notified a 1.5 per cent raise in LNG prices for the Sui Southern Gas Company (SSGC) consumers for July, despite witnessing a declining trend in imported fuel prices globally.

In June, the price of LNG at transmission line was $11.8001 per mmbtu and $12.7181 per mmbtu on the distribution network.

The price of LNG has come down to $11.6908 per mmbtu on transmission and $12.6493 per mmbtu for July 2023 registering a reduction of 0.93 per cent and 0.54 per cent respectively.

In the case of Sui Southern Gas Company (SSGC), the price of RLNG stood at $11.3736 per mmbtu on transmission and 412.9429 per mmbtu on the distribution network for June 2023.

The LNG price has come down to $11.2784 per mmbtu on transmission and went up to $13.1367 per mmbtu on the distribution network for July 2023.

The price on the distribution network was up by 1.5 per cent due to the impact of losses and theft in SSGC utility.

The LNG price on transmission line was down by 0.84 per cent due to the price reduction in the global market.

The reduction in RLNG prices is due to a decrease in RLNG Brent prices in the international market. However, in the case of RLNG price for the distribution network of SSGC, the UFG losses impact of the relevant network has resulted in a net increase in RLNG price, the Ogra said in a statement.

The price has been computed at Pakistan State Oil (PSO)’s imported nine LNG cargoes, whereas, Pakistan LNG Limited (PLL) imported only one LNG cargo.

The PSO has been importing LNG cargoes from Qatar under a long-term contract, whereas, the PLL had been importing only one LNG cargo.

Due to the failure of Pakistan LNG Limited (PLL), the consumers had been paying multimillion dollars in capacity payments to LNG terminal operator.

During the month under review, the PLL had a contract with LNG terminal operators to import six LNG cargoes but it imported only one LNG cargo.

So, the consumers had paid capacity payments for the other six LNG cargoes which were not arranged by the PLL.

The regulator said that the Ogra, in accordance with the policy guidelines of the federal government has determined the Regasified Liquified Natural Gas (RLNG) prices for the Sui companies with effect from July 1st, 2023.

Copyright Business Recorder, 2023