Ogra notifies lower rates for SSGC and SNGPL consumers after two long-term-contract shipments arrive
Consumers in Pakistan will pay noticeably less for re-gasified liquefied natural gas (RLNG) this month. The Oil and Gas Regulatory Authority (Ogra) has notified cuts of up to 21.57 per cent for September, after two LNG cargoes arrived from Qatar under long-term contracts.
For Sui Southern Gas Company (SSGC) consumers, the price falls by $3.91 to $14.223 per mmBtu, down from $18.1345 in August. For Sui Northern Gas Pipelines Limited (SNGPL) consumers, it drops by $3.83, or 20.13 per cent, to $15.196 per mmBtu from $19.0276.
What drove the cut
- The September rates are based on two cargoes imported by Pakistan State Oil (PSO) under its Brent-linked contracts with Qatar, priced at 13.37 per cent and 8.7153 per cent of Brent crude.
- Pakistan LNG Limited (PLL) bought no spot-market cargo this month, so costlier spot supplies did not push up the average.
Qatari supplies were disrupted after attacks on Qatari energy infrastructure on March 2, when QatarEnergy declared force majeure and suspended some shipments to customers in Europe and Asia, including Pakistan. September’s cargoes mark a return of Qatari supply.
The cut follows a volatile few months. In July, prices rose by as much as 34.6 per cent after five expensive spot cargoes were imported by PLL, with no Qatari cargo from PSO. August then saw a reduction of up to 27.7 per cent, when one Qatari cargo was included.
RLNG makes up roughly a fifth of Pakistan’s energy mix and is widely used to supplement declining domestic gas supplies. Lower prices offer some relief as the country continues to manage gas shortages and higher energy demand.
