The Oil and Gas Regulatory Authority (OGRA) has announced a significant decrease in LNG prices.
The reduction applies to the Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) systems.
According to an official notification, the LNG price for the SNGPL system has been reduced by $6.81 per MMBtu.
Following the decrease, the new LNG price for SNGPL has been fixed at $19.03 per MMBtu.
OGRA has also reduced the LNG price for the SSGCL system. The price has been cut by $6.95 per MMBtu.
The new LNG price for SSGCL now stands at $18.13 per MMBtu. The reductions represent a notable change in imported gas pricing.
According to OGRA, LNG prices for both gas systems have decreased by up to 27.71%.
The latest decrease comes as the government continues efforts to improve Pakistan’s gas sector. Authorities are also focusing on better financial and operational performance.
Lower LNG prices could help reduce the cost pressure on gas distribution systems. The impact on consumers will depend on applicable pricing policies and future decisions.
The government has also been working on reforms within major gas companies. SSGCL has been directed to develop a sustainable business strategy.
Federal Minister for Petroleum Ali Pervaiz Malik recently directed SSGCL’s board to prepare a comprehensive plan.
The strategy will focus strongly on controlling Unaccounted-for-Gas (UFG). The objective is to make the company financially sustainable.
The minister held a meeting with SSGCL’s chairman, directors and senior management in Karachi.
The meeting reviewed the company’s overall performance and major achievements. Officials also discussed operational challenges and future reform priorities.
SSGCL management briefed the minister about developments within the company. The briefing included progress in the gas distribution network.
Officials highlighted improvements in the company’s operations. They also shared details about efforts to reduce gas losses.
The meeting was informed that UFG had fallen by approximately 57% in volumetric terms. The decrease was presented as a significant improvement in the company’s performance.
UFG refers to gas that enters a distribution system but cannot be accounted for. Reducing such losses can improve the financial position of gas utilities.
Officials also reported that several major consumer categories faced no gas load-shedding. These included K-Electric, industrial consumers and fertiliser plants.
Domestic consumers were reportedly receiving gas three times a day. The supply schedule was discussed during the meeting on SSGCL’s performance.
The latest LNG price decrease comes alongside these broader efforts. The government is seeking improvements in efficiency and financial sustainability.
OGRA’s decision has lowered the notified LNG prices for both major gas systems. The new rates will apply according to the regulator’s notification.
The decrease of $6.81 per MMBtu for SNGPL marks a major price adjustment. SSGCL has also received a similar reduction of $6.95 per MMBtu.
The changes could provide some relief to the gas sector. However, broader consumer impacts will depend on future regulatory decisions.
The government continues to focus on reducing gas losses and improving distribution. It also aims to strengthen the financial position of gas companies.
The reported 57% decrease in UFG is among the developments highlighted by SSGCL. Officials believe continued reforms can improve the company’s overall performance.
OGRA’s latest notification adds another development to the ongoing gas sector reforms. The regulator has formally announced the new LNG prices.
The decrease in LNG prices may support efforts to manage gas sector costs. Authorities are expected to continue monitoring the market and distribution system.
The government’s wider strategy includes improving efficiency and reducing operational losses. These measures are aimed at building a more sustainable gas sector.
The latest LNG price adjustment therefore comes amid broader reform efforts. OGRA and relevant authorities will continue overseeing pricing and gas sector developments.
In other news read more about: OGRA Reduces LNG Prices by Up to 5.26% for January
