OGRA notifies reduction in RLNG prices for November

Prices had earlier been increased in October

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has notified a cut in the prices of Re-gasified Liquefied Natural Gas (RLNG) for the consumers of Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) for the month of November.

According to notification issued in this regard on Wednesday, the price of RLNG has been reduced by $0.1037 per Million British Thermal Unit (MMBTU) for SNGPL consumers while SSGCL consumers will benefit from a cut of $0.1021 per MMBTU.

The price for SNGPL and SSGCL has been fixed at $15.6791 per MMBTU and $15.4259 per MMBTU, respectively.

According to the authority, the average cost of supply has been taken on a provisional basis as per the Determination of Estimated Revenue Requirement (DERR) for the financial year 2020-21 (FY21), while the weighted average sale price has been worked out in the light of the Ministry of Energy’s advice and Unaccounted for Gas (UfG) has been taken at 6.3 per cent provisionally, in line with a separate decision of the authority issued earlier on November 1.

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“The above prices have been computed on the basis of data provided by Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL) whereas the parties including SNGPL, SSGCL, PSO and PLL shall scrutinise the same on the basis of evidence before making payments as per their mutual agreements,” the notification states.

It is pertinent to mention here that the new prices of RLNG include charges of LNG terminals, transmission losses, port charges, and margins of the importers – PSO and PLL.

It may also be recalled that in October, the price of RLNG had been increased by $0.4294 to $15.7828 per MMBTU for SNGPL and $0.4362 to $15.5280 per MMBTU for SSGC.

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