OGRA announces LNG price reduction for December

Karachi: The Oil and Gas Regulatory Authority (OGRA) has officially announced a decrease in liquefied natural gas (LNG) prices for the month of December 2024.

According to the recent notification, the LNG price for Sui Northern Gas Pipelines Limited (SNGPL) has dropped by $0.36 per million British thermal units (MMBTU), bringing the new price to $12.89 per MMBTU. Likewise, Sui Southern Gas Company Limited (SSGCL) will see a $0.25 reduction, lowering its LNG price to $12.54 per MMBTU.

These revised prices will be effective throughout December. In addition, Pakistan has recently secured a second LNG cargo from the State Oil Company of the Azerbaijan Republic (SOCAR). Pakistan LNG Ltd (PLL), in collaboration with the Ministry of Energy, finalized this LNG procurement deal as part of efforts to meet the country’s growing energy needs.

Last year, Pakistan entered a historic agreement with Azerbaijan to purchase LNG on flexible terms, and the country is also preparing for winter by securing a liquefied natural gas shipment to mitigate fuel shortages. Additionally, PLL awarded a tender to Oman’s OQ Trading for a spot LNG cargo scheduled for delivery in January.

The national energy sector has faced challenges, including difficulties securing spot LNG cargoes due to rising global market prices exacerbated by the Russia-Ukraine conflict, leading to power shortages. Nevertheless, PLL, responsible for LNG procurement, continues managing the entire supply chain for gas distribution to end users in Pakistan.