By Staff Reporter
ISLAMABAD: The government on Monday cut local RLNG (Re-gasified liquefied natural gas) prices by up to 13.1 percent for October.
Regulator OGRA said LNG for Sui Northern Gas Pipeline Limited (SNGPL) Sui Southern Gas Company (SSGC) consumers have been cut by by 12.92 percent or $2.1929/MMBtu, and 13.1 percent or $2.2896/MMBtu, respectively.
The regulator set RLNG prices at $14.785/MMBtu for the consumers of SNGPL and $15.1865/MMBtu for SSGC.
The new prices of RLNG also included LNG terminals charges, transmission losses, port charges, and margins of the state-run importers – Pakistan State Oil and Pakistan LNG Limited. New weighted average sale prices of RLNG have been computed based on nine cargoes imported for the month.
“In accordance with the federal government decision regarding RLNG allocation, pricing and associated matters and advice from the ministry of energy regarding weighted average sale price dated January 22, 2018, RLNG weighted average sale price for the month of October 2022 has been computed,” OGRA said in a statement.
Analysts said the country’s acute energy shortage is at risk of lasting years after the government was unable to secure a long-term supply of liquefied natural gas earlier this month.
Not one supplier responded to Pakistan LNG Ltd.’s tender to buy the power-plant fuel for between four to six years starting January.
The tender, which closed on October 3, was seeking to procure one cargo of LNG each month.
Pakistan has been hit with widespread blackouts this year after several failed attempts to buy gas from the expensive spot market. It tried to get a long-term deal looking for more reasonable prices, but that hasn’t materialized.
Many spot cargoes are currently going to Europe, where buyers are willing to pay high prices in the rush to secure gas to replace dwindling Russian pipeline flows. That’s leaving developing nations facing energy shortages and economic uncertainty for years.
Some LNG suppliers are also hesitant to sell fuel to Pakistan out of fear it may not be able to make future payments.
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