The government has announced an increase in the prices of re-gasified liquefied natural gas (RLNG) for both the Sui Gas companies. The hike will be up to half a dollar per MMBTU or 3.8 percent for October 2023.

The Oil and Gas Regulatory Authority (OGRA) has released a notification announcing that the price of RLNG for consumers of Sui Northern Gas Pipelines Limited (SNGPL) has increased by $0.496 per MMBTU (3.87pc) from the previous month. Similarly, the cost of RLNG for consumers of Sui Southern Gas Company (SSGC) has increased by $0.508 per MMBTU (3.8pc) compared to September prices.The spokesperson for Ogra said, “In accordance with the policy guidelines of the federal government, Ogra has determined the RLNG prices for Sui Gas companies, effective from October 1, 2023,” adding that the increase in RLNG prices is attributed to the rise in RLNG Brent prices in the international market. It announced the provisional prices for the RLNG sale for October.The weighted average sale price for Sui Northern Gas Pipelines Limited (SNGPL) consumers has been set at $13.3332 per Million Metric British Thermal Units (MMBTU), while Sui Southern Gas Company (SSGC) consumers will be charged $13.8716 per MMBTU.In September, the RLNG prices set by OGRA were $12.8366 per MMBTU for SNGPL consumers and $13.3636 per MMBTU for SSGC consumers.The fluctuation in RLNG prices was notable throughout the year. Ogra reduced RLNG prices seven times since January, with two increases recorded in May, September, and now in October. The price started declining in January, with a reduction of up to 2.2 percent. This was followed by further decrease of 4.3 percent in February, 3.16 percent in March, and 0.47 percent in April. It was increased by 1.3 percent in May 2023 but then decreased again in June (2.55 percent), July (1.5 percent), and August (1.3 percent). In September, there was an increase of 3.08 percent in the RLNG price.The recently revised prices for RLNG include several elements, such as charges for LNG terminals, transmission losses, port charges, and margins for state-owned importers, namely Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL).They were determined based on the import of eight cargoes by PSO and one cargo by PLL.In a noteworthy development, the Asian Platts JKM (Japan Korea Marker) LNG price rose to $18.585 per mmBtu on October 23, 2023, marking a 24 percent increase from the previous month when it was $14.99 per mmBtu on September 25, 2023. Likewise, since August 25, 2022, (when the LNG price peaked at $69.955/mmBtu), its price has reduced by $51.37/mmBtu or 73.4 percent. JKM is the LNG benchmark price assessment for the spot physical cargoes.Pakistan relies on LNG imports to meet nearly one-third of its energy demands. However, when comparing the RLNG prices in October 2023 with those of October 2022, the cost for SNGPL consumers decreased by only 9.8 percent, while SSGC clients experienced an 8.65 percent reduction over the year.

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