OGRA slashes LNG prices for January

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) on Thursday slashed the prices of liquefied natural gas (LNG) for the month of January, providing some relief to the consumers amid the winter season when demand from household consumers spikes.

According to a notification issued by the OGRA, the LNG price for Sui Northern Gas Pipelines Limited (SNGPL) consumers has been cut by $1.13, bringing it down to $13.68 per Metric Million British Thermal Unit (MMBtu). The LNG price for the Sui Southern Gas Company Limited (SSGCL) consumers has been reduced by $1.21, settling at $14.24 per MMBtu.

The OGRA said that the price reduction in LNG for January was lower than the reduction recorded for December 2023.

In another development, the Ministry of Energy (Petroleum Division) and Pakistan LNG Limited (PLL) announced the successful purchase of an LNG cargo from the State Oil Company of the Azerbaijan Republic (SOCAR) under a government-to-government framework agreement.

The PLL and SOCAR had signed the framework agreement in July 2023 for the purchase of LNG by Pakistan. This was a significant step in enhancing bilateral energy cooperation between the two countries.

The cargo is expected to reach Pakistan by February 2024.

According to the framework agreement, SOCAR can offer one LNG cargo per month to PLL, subject to the availability of LNG reserves in Pakistan. A reliable and continuous supply of LNG is vital for meeting the country’s growing energy needs and keeping various industries operational.