The Oil and Gas Regulatory Authority has increased the price of Regasified Liquefied Natural Gas by around 15 percent for June, reflecting the higher cost of emergency spot LNG imports made after supply disruptions during the US-Iran conflict.
According to OGRA’s latest notification, the transmission-stage RLNG price for Sui Northern Gas Pipelines Limited has been raised by 14.85 percent to $17.94 per mmBtu, while the distribution-stage price has increased by 14.94 percent to $19.52 per mmBtu.
For Sui Southern Gas Company Limited, the transmission-stage price has gone up by 16 percent to $16.37 per mmBtu, while the distribution-stage price has climbed 16.17 percent to $18.64 per mmBtu.
The revised prices mark a sharp increase from recent months. RLNG is now nearly 56 percent more expensive than in March and around 73 percent higher than in February, significantly increasing fuel costs for power producers and industrial consumers.
The increase follows Pakistan’s reliance on costly LNG purchases from the international spot market after supply disruptions linked to the temporary closure of the Strait of Hormuz and interruptions to Qatar’s gas operations during the regional conflict.
Three of the four LNG cargoes imported in June under Pakistan State Oil’s long-term contract with QatarEnergy were priced at an average of $13.14 per mmBtu, compared with around $9.20 per mmBtu in May. At the same time, Pakistan LNG Limited, which had remained largely inactive for more than two years, imported one emergency spot cargo at $19.13 per mmBtu.
The higher import cost has now flowed through to domestic RLNG prices. Besides expensive spot purchases, end-user rates have also been pushed up by distribution losses, port charges, retainage and margins across the LNG supply chain.
The impact is already showing up in power generation costs. RLNG-based electricity generation fuel costs rose to Rs31 per unit in May, more than double the Rs13.72 per unit recorded in April, adding further pressure on the power sector and raising the possibility of higher electricity tariffs going forward.
According to OGRA, around two-thirds of PLL’s June cargo will be supplied to K-Electric, while the remaining volume will be allocated to SNGPL for onward distribution to consumers.
