ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has notified a marginal increase of about half a per cent in Regasified Liquefied Natural Gas (RLNG) prices for February at the distribution stage for both Sui gas utilities, primarily driven by higher terminal charges despite a decline in import prices.
Read More: OGRA notifies revised RLNG prices for November
The adjustment — ranging from 0.53pc to 0.59pc — follows two consecutive monthly reductions of roughly 11pc combined in December and January. Earlier, RLNG prices had risen cumulatively by 4.4pc in October and November.
Karachi-based Sui Southern Gas Company (SSGCL), which supplies Sindh and Balochistan, reported distribution losses of 12.55pc, up from about 10.6pc two months earlier. Lahore-based Sui Northern Gas Pipelines Limited (SNGPL), serving Punjab and Khyber Pakhtunkhwa, posted nearly 9pc losses compared with 7.47pc in October.
According to the notification, SNGPL’s RLNG sale price at the transmission stage rose 0.53pc to $10.47 per mmBtu in February from $10.41 in January. The distribution-stage price increased to $11.335 per mmBtu from $11.27. For SSGCL, the transmission-stage price climbed 0.59pc to $9.03 per mmBtu, while the distribution-stage price rose to $10.27 from $10.21.
Ogra said the uptick was due to “slight increase in terminal charges,” even though the average delivered ex-ship LNG price declined to about $7.45 per mmBtu in February from $7.52 in January. Analysts note that RLNG tariffs remain substantially above import costs because of system losses, retainage and margins charged by importers and port authorities.
Read More: New gas connections fee for domestic consumers increased
Pakistan’s February RLNG basket was based on eight cargoes imported under long-term contracts between Pakistan State Oil and QatarEnergy. Four cargoes were priced around $8.46 per mmBtu and four at about $6.45, resulting in a blended import rate lower than previous months despite higher terminal charges.