OGRA increases RLNG Prices for January 2025

KARACHI: The Oil and Gas Regulatory Authority (OGRA) on Friday announced an increase in the prices of Re-gasified Liquefied Natural Gas (RLNG) for January 2025, impacting both Sui Southern Gas Company Limited (SSGCL) and Sui Northern Gas Pipelines Limited (SNGPL).

According to the notification, RLNG prices for Karachi-based SSGCL have been increased to $12.60 per mmBtu, while the price for Lahore-based SNGPL has risen to $12.89 per mmBtu.

This development follows OGRA’s previous decision in December 2024, where RLNG prices were reduced. At that time, SNGPL’s LNG price saw a cut of $0.36 per mmBtu, setting the rate at $12.89, while SSGCL’s price dropped by $0.25 per mmBtu to $12.54. These reductions were applicable for December 2024.

In related news, Pakistan continues to secure liquefied natural gas (LNG) to address its winter fuel deficit. Pakistan LNG Limited (PLL) recently awarded a tender to Oman’s OQ Trading for a spot LNG cargo to be delivered this January. However, the procurement was made at a price premium due to Pakistan’s credit risk, as reported by sources.

Last July, Pakistan signed a landmark framework agreement with Azerbaijan for LNG procurement on flexible terms. The country has faced difficulties acquiring spot cargoes following last year’s global price surge triggered by the Russia-Ukraine conflict, which has contributed to widespread power outages.

The recent increase in RLNG prices highlights Pakistan’s ongoing challenges in managing energy costs while addressing fuel shortages amid volatile global market conditions.