The price of regasified liquefied natural gas (LNG) has been significantly reduced in Pakistan. The Oil and Gas Regulatory Authority (OGRA) has fixed new rates for the Sui Northern and Sui Southern systems.
Under the new OGRA rates, the price of LNG for the Sui Northern Gas Pipelines Limited (SNGPL) system has been reduced by $6.81 per million British thermal unit (MMBtu).
After the reduction, the new price for the Sui Northern system has been fixed at $19.03 per MMBtu. Earlier, this rate was $25.84 per MMBtu.
Similarly, the price of LNG for the Sui Southern Gas Company (SSGC) system has been reduced by $6.95 per MMBtu. The new price has been fixed at $18.13 per MMBtu, which was earlier $25.08.
According to the data, the price of Sui Northern has decreased by about 26 percent while that of Sui Southern has decreased by about 28 percent.
This decrease has come at a time when LNG prices had increased significantly in early August. At that time, OGRA had fixed the price for Sui Northern at $25.83 and for Sui Southern at about $25.09 per MMBtu.
The reduction in LNG price may reduce the pressure on the import cost of the gas sector. However, its direct impact on the gas bills of consumers will also depend on other factors and government tariff decisions.
The new rates have been fixed after a revision issued by OGRA. LNG prices in Pakistan change from time to time depending on the cost of imported gas and other relevant factors.
