ISLAMABAD: The government on Wednesday raised prices of re-gasified liquefied natural gas (RLNG) by up to four percent for the current month, indicating further cost pressure on power plants that depend on the cheap oil substitute to produce energy.
Oil and Gas Regulatory Authority (Ogra) notified a three percent month-on-month increase in price of RLNG for Sui Northern Gas Pipelines Limited (SNGPL) to $11.3548 per million British thermal unit (MMBtu). RLNG price for Sui Southern Gas Company (SSGC) was raised by 3.8 percent to $11.3724/MMBtu.
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They are the weighted average sale prices without general sales tax and for distribution by Pakistan State Oil and Pakistan LNG Limited.
The Ogra computed transmission weighted average sale price without GST for July at $10.2026/MMBtu for SNGPL and $9.9110 for SSGC.
Natural gas accounts for nearly half of the country’s primary energy supply mix. The country produces around 4,000 billion cubic feet/day (bcfd) of gas against the demand of more than six bcfd. Currently, the country has two LNG terminals with regas capacity of 1.2 to 1.3 billion cubic feet per day, or around nine million to 10 million tons of LNG a year.
Last year, the country imported nearly seven million tons of LNG, which could grow to as high as 15 million tons this year and up to 25 million to 30 million tons over the next three to five years.
LNG prices began to rally in Asian market and traders are finding opportunity in re-exporting cargoes to the market from Europe where demand is muted on supply gluts as well as milder winter earlier this year.
Oilprice.com reported that summer demand for August pushed up LNG prices in Asia at the fag-end of June from the three years lows.
In June, weighted average sale price of LNG for distribution by SNGPL stood at $11.0163/MMBtu, an official document showed. It was $9.9012/MMBtu for transmission. For SSGC, the price was $10.9562/MMBtu for distribution and $9.4499/MMBtu for transmission.
In May, weighted average sale price of LNG for distribution by SNGPL stood at $10.4589/MMBtu and $9.3889/MMBtu for transmission. The distribution price was $10.3863/MMBtu for SSSGC and transmission price was $8.9623/MMBtu.
The Ogra set $10.5758/MMBtu as distribution price for SNGPL for April. It was $9.5109/MMBtu for transmission. The distribution price for SSGC was $10.5246/MMBtu, while weighted average sale price for LNG transmission was $9.0815/MMBtu.
(This news/article originally appeared in The News on July 11th, 2019)