Ogra raises RLNG prices by up to 16% for June after costly spot purchases

The Oil and Gas Regulatory Authority (Ogra) has notified an increase of around 15% in Regasified Liquefied Natural Gas (RLNG) prices for June for the two Sui gas companies, mainly due to costly spot purchases made at short notice after supply disruptions linked to the Gulf tensions. 

At the transmission stage, the RLNG sale price for Sui Northern Gas Pipelines Limited (SNGPL) increased 14.85% to $17.94 per million British thermal units (mmBtu) in June from $15.62 in May. SNGPL’s transmission-stage price had stood at $10.45 per mmBtu in February.

At the distribution stage, SNGPL’s RLNG price rose 14.94% to $19.5228 per mmBtu in June from $16.9847 in May.

For Sui Southern Gas Company Limited (SSGCL), the transmission-stage RLNG price increased 16% to $16.368 per mmBtu in June from $14.093 in May. SSGCL’s transmission-stage price had stood at $9.47 per mmBtu in December 2025.

At the distribution stage, SSGCL’s RLNG price rose 16.17% to $18.64 per mmBtu in June from $16.042 in May.

The distribution-stage price for SSGCL had stood at $10.77 per mmBtu in December.

SSGCL serves consumers in Sindh and Balochistan. Its distribution-stage system losses stood at 12.55%, up from about 10.6% a couple of months earlier.

SNGPL supplies gas to Punjab and Khyber Pakhtunkhwa. Its distribution-stage losses were reported at almost 9%, compared with 7.47% in October.

The notified prices show that supply-chain costs continue to add to end-user RLNG prices.

Ogra’s data shows that distribution prices of $18.64 per mmBtu for SSGCL and $19.5228 per mmBtu for SNGPL are around $3.3 and $4.2 higher, respectively, than the average delivered ex-ship price.

The higher end-user price includes margins charged by LNG importers Pakistan State Oil and Pakistan LNG Limited, as well as port authorities, through retainage and other margins at 3.77% of the delivered ex-ship price.

Distribution losses of 8.97% for SNGPL and 12.55% for SSGCL are also included in the pricing.

The latest notification places June RLNG prices about 15% higher than May, 56% higher than March and 73% higher than February.

The basket RLNG price was based on four cargoes each in June, May and April.

Three cargoes were imported under two LNG contracts between Pakistan State Oil and QatarGas at an average price of about $13.144 per mmBtu in June, compared with $9.2 per mmBtu in May.

Pakistan LNG Limited imported one cargo in June at $19.134 per mmBtu and one cargo in May at $18.4 per mmBtu.

Pakistan State Oil has a long-term contract for up to 11 cargoes per month, but part of the supply is usually diverted to the spot market due to lower domestic energy consumption linked to economic constraints.

However, even the usual seven to eight monthly cargoes could not be supplied after Qatar faced transport constraints due to the closure of the Strait of Hormuz and suspension of gas operations at the field.

As a result, the government reactivated Pakistan LNG Limited, which had remained dormant for almost two and a half years, to procure LNG from the spot market as electricity shortages re-emerged.

The company has been importing an average of one LNG cargo per month on short notice of 48 to 72 hours.

Ogra said that of Pakistan LNG Limited’s cargo of 3.2 million mmBtu, two-thirds, or 2.4 million mmBtu, would be supplied to K-Electric, while the remaining one-third, or 0.8 million mmBtu, would be supplied to SNGPL.

The increase has also raised fuel costs for power generation. RLNG-based power generation cost Rs31 per unit in May, compared with Rs13.72 per unit in April.