Pakistan cut re-gasified liquefied natural gas prices by up to 21.57 per cent for September after receiving two LNG cargoes from Qatar under long-term contracts, easing fuel costs after months of supply disruptions. The Oil and Gas Regulatory Authority (Ogra) said Friday that RLNG prices for consumers of Sui Southern Gas Company (SSGC) fell by $3.91 per million British thermal units (mmBtu), or 21.57 per cent, to $14.223 per mmBtu from $18.1345 in August.
For consumers of Sui Northern Gas Pipelines Ltd (SNGPL), prices dropped $3.83 per mmBtu, or 20.13 per cent, to $15.196 from $19.0276, according to an Ogra notification.The September price calculation was based on two LNG cargoes imported by state-run Pakistan State Oil under its long-term contracts with Qatar. One cargo was priced at 13.37 per cent of Brent crude oil and the other at 8.7153 per cent of Brent. Pakistan LNG Ltd (PLL) did not procure any cargo from the international spot market during the month, helping keep the cost of imported gas below levels seen when the country was forced to rely on expensive spot supplies.
Qatar remains a key source of LNG for Pakistan under two long-term, Brent-linked contracts with PSO. Supplies had come under pressure after attacks on Qatari energy infrastructure on March 2 prompted QatarEnergy to declare force majeure and suspend some LNG shipments to customers in Europe and Asia, including Pakistan. The return of two Qatari cargoes in September comes as Pakistan continues to manage gas shortages and higher energy demand.
RLNG accounts for roughly a fifth of the country's energy mix and is widely used to supplement declining domestic gas supplies. The latest reduction follows a sharp increase in RLNG prices in July, when Ogra raised prices by as much as 34.6 per cent after Pakistan imported five costly cargoes from the spot market. All five were procured by PLL, while PSO did not import any cargo from Qatar that month.Pakistan also reduced RLNG prices by up to 27.7 per cent for August, when one Qatari cargo was included in the price calculation.