ISLAMABAD           -        The government Monday reduced the prices of re-gasified liquefied natural gas (RLNG) by 3.25 percent for the consumers of Sui Northern Gas Company (SNGPL) and 3.6 percent for the consumers of the Sui Southern Gas Company (SSGC).

As per the notification issued by the Oil and Gas Regulatory Authority (OGRA), the RLNG prices were decreased for the consumers of both the state owned gas distribution companies.

As per the notification OGRA has set the new prices at $10.4822 per mmbtu for the consumers of SNGPL and $10.4822 per mmbtu for SSGC. In previous month of December, the RLNG price for SNGPL was $10.8349 per mmbtu and for SSGC, it was $10.8234 mmbtu.

The decision has resulted in a decrease by $0.3524 per mmbtu in LNG prices for SNGPL and 0.3632 per mmbtu for SSGC.

This is the second consecutive month the price of RLNG has been decreased as Ogra had reduced the RLNG price by 1.05 percent for Sui Southern Gas Company (SSGC) and 1.015 percent for Sui Northern Gas Company (SNGPL) for the month of December.

With the reduction in RLNG prices, it would also help reduce the power generation cost from this source, as this imported gas is the second largest contributor in Pakistani power generation pie.

The new notified prices of RLNG also include charges of the LNG terminals, transmission losses, port charges, and margins of the importers i.e. Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL).

These new weighted average sale prices of RLNG have been computed, based on 10 cargoes imported for the month including six cargoes by PSO and four by Pakistan LNG Limited (PLL). For the previous month nine cargoes were imported for the month including six cargoes by PSO and three by Pakistan LNG Limited (PLL).

LNG is imported product and pegged with the international oil prices, so with the increase in oil prices, this product’s price also increases.