ISLAMABAD – Oil and Gas Regulatory Authority (Ogra) Wednesday decreased the prices of Re-Liquefied Natural Gas (RLNG) by up to 19.77 percent for the consumers of Sui Northern Gas Pipeline Company Limited (SNGPL) and Sui Southern Gas Company Limited (SSGC) for the month of December.
A notification issued by OGRA said that it has decreased the price of RLNG by $3.0553 per MMBTU (19.49pc) for the consumers of Sui Northern Gas Pipeline Company Limited (SNGPL) and $3.0490 per MMBTU (19.77pc) for Sui Southern Gas Company Limited (SSGC).
The regulator decreased the provisional price of RLNG and reduced the rates for the consumers of SNGPL to $12.6238 per MMBTU from the earlier $15.6791 per MMBTU in November. While for the consumers of SSGC it has been decreased to $12.3769 per MMBTU from $15.4259 MMBTU in November.
As per the OGRA notification a total of 10 cargoes are due in December , 2021, with eight cargoes are coming from two long term PSO contracts with Qatar and two are coming to PLL long term contracts. There are two reasons for decrease in RLNG prices, which are the non procurement of LNG under spot purchase and procurement of two cargoes from new long term contract with Qatar at cheaper rates.
Instead of 12 LNG cargoes in December 2020, the government will procure 10 cargoes which is less than the procurement made during the same period of last year. The less import is due to Pakistan LNG Limited (PLL) inability to attract even a single bid for its eight LNG (liquefied natural gas) cargoes, under the spot purchases, meant for the months of December 2021 and January 2022 mainly due to supply constraints in the international LNG market. In September the state owned firm PLL had invited bids from international supplies for the supply of eight LNG cargoes for December 2021 and January 2022 deliveries. The four bids invited for December 2021 were for the windows of 6-7 December 10-11 December, 15-16 December and 26-27 December. For January 2022 supplies of LNG, bids were invited for the spot of 14-15 January, 19-20 January, 24-25 January and 29-30 January spot. The PLL has waited till closing time of the bid which was October 11, 2021, 12pm, however no bid was received from any company.
Similarly the second reason for reduction in prices is cheaper LNG purchase of LNG from Qatar under new long term contract at 10.2 percent of Brent. The price of two LNG cargoes imported under the fresh agreement is $8.1386 per MMBTU. The six cargoes purchased, at 13.37 percent of Brent, under the previous long term contract with Qatar cost $10.6679 per MMBTU. Similalry the two cargoes procured by PLL under long term contracts cost average $9.004 per MMBTU.
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