ISLAMABAD       -       The government has Friday reduced the prices of Re-gasified Liquefied Natural Gas (RLNG) by 1.05 percent for Sui Southern Gas Company (SSGC) and 1.015 percent for Sui Northern Gas Company (SNGPL) for the month of December.

 As per the notification issued by the Oil and Gas Regulatory Authority (OGRA) the RLNG prices were decreased for the consumers of both the state owned gas distribution companies. As per the notification OGRA has set the new prices at $10.8349 per mmbtu for the consumers of SNGPL and $10.8234 per mmbtu for SSGC. In previous month of November, the RLNG price for SNGPL was $10.946 per mmbtu and for SSGC, it was $10.9385 mmbtu.

The decision has resulted a decrease by $0.111 per mmbtu in LNG prices for SNGPL and 0.115 per mmbtu for SSGC. With the reduction in RLNG prices, it would also help reduced the power generation cost from this source, as this imported gas is the second largest contributor in Pakistani power generation pie.

The new notified prices of RLNG also include charges of the LNG terminals, transmission losses, port charges, and margins of the importers i.e. Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL). These new weighted average sale prices of RLNG have been computed, based on nine cargoes imported for the month including six cargoes by PSO and three by Pakistan LNG Limited (PLL). LNG is imported product and pegged with the international oil prices, so with the increase in oil prices, this product’s price also increases