For July 2023, the government has cut the average monthly sale price of re-gasified liquefied natural gas (RLNG) by up to $0.1938, or 1.5 percent.
The Oil and Gas Regulatory Authority (OGRA) revealed its RLNG weighted average selling preliminary pricing on Tuesday. It set RLNG pricing for SNGPL customers at $12.6493/mmBtu and $13.1367/mmBtu for SSGC customers.
This represents a 1.5 percent decrease from the previous rate and follows a succession of rate cuts in recent months. Because the federal government has already decided to raise electricity tariffs with effect from the current billing cycle, the lower price will most likely have a minimal impact on electricity generating costs, particularly for RLNG-based power plants.
Since May of last year, with the exception of a few months, the federal government has been cutting RLNG prices for domestic users.
Since Pakistan began importing LNG in 2015, RLNG prices in the domestic market in May 2022 were the highest ($21.8317/MMBtu for SNGPL and $23.7873/MMBtu for SSGC).
The new pricing are likely to include LNG terminal fees, port costs, and the profit margins of state-owned importers Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL).