OGRA reduces RLNG prices for SSGC, SNGPL by up to 2.7 per cent

ISLAMABAD: Despite record losses, the Oil and Gas Regulatory Authority (Ogra) has announced a reduction of up to 2.7 per cent in the sale prices of Regasified Liquified Natural Gas (RLNG) for two major gas companies, SSGC and SNGPL, for December.

According to Profit, in its delayed notification, Ogra also approved an increase in unaccounted-for gas (UFG) losses.

The UFG losses for Sui Southern Gas Company Ltd (SSGCL) were raised from 13 per cent to 16.16 per cent, while for Sui Northern Gas Pipelines Ltd (SNGPL), they increased from 8 per cent to 8.6 per cent.

However, no explanation was provided for allowing higher losses for both companies, which will result in consumers paying up to 16 per cent more than the actual amount of gas they receive.

As per the notification, the RLNG price for SNGPL at the transmission level has been reduced by 3.26 per cent, bringing it down to $11.97 per million British thermal unit (mmBtu) from $12.37 in November. At the distribution level, the price dropped by 2.72 per cent to $12.90 per mmBtu compared to last month’s $13.26.

Similarly, for Karachi-based SSGCL, the transmission price was cut by 6 per cent, bringing it to $10.54 per mmBtu from November’s $11.22.

At the distribution stage, the price dropped by 1.99 per cent to $12.54 per mmBtu from $12.80 last month. The higher losses during distribution contributed to the significant price difference between the transmission and distribution stages.

In absolute terms, the RLNG transmission price for SSGCL dropped by $0.68 per mmBtu, while the distribution price saw a reduction of $0.26 per unit. For SNGPL, the transmission price decreased by $0.40 per mmBtu, and the distribution price by $0.36 per unit.

Despite the reductions, RLNG distribution prices remain significantly higher than the average delivery price of $8.93 per mmBtu set by Pakistan State Oil (PSO).

The distribution prices for SSGCL and SNGPL are $12.54 and $12.90 per mmBtu, respectively, due to profit margins and losses charged by importers and port authorities.

These include retainage fees and margins of around 3 per cent, along with losses of 10.13 per cent for SNGPL and 16.16 per cent for SSGCL.

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