Gas Prices Increased by Up to 15.3%

For context, the Oil and Gas Regulatory Authority (OGRA) has rose regasified liquefied natural gas (RLNG) costs by up to 15.3% for October, raising the cost of gas supplied by both Sui gas firms.

Key points

• Similarly, the RLNG transmission cost for Sui Southern Gas Business Limited (SSGCL) rose by 15.25% to $14.53 per mmBtu from $12.611 per mmBtu in September.
• Although the average delivered LNG cost stood at $10.75 per mmBtu in October, the distribution-stage rate reached $16.396 for SSGCL and $17.33 for SNGPL.
• The company's distribution-stage cost additionally climbed by 15.27%, reaching $16.396 per mmBtu compared with $14.22 in the previous month.
• At the distribution stage, the cost climbed by 14% to $17.33 per mmBtu from $15.196 per mmBtu.
• These charges come on top of distribution system losses of 8.97% for SNGPL and 12.55% for SSGCL.

For context, the latest growth follows a 20% reduction in RLNG costs in September and is mainly attributed to higher international crude oil rates.

Meanwhile, the growth is additionally projected to affect fuel costs for power generation in December. When the average LNG import cost stood at $10.06 per million British thermal units (mmBtu), rLNG-based electricity generation cost Rs40 per unit in September. This import cost climbed to $10.75 per mmBtu in October.

Meanwhile, the average delivered ex-ship (DES) cost of LNG from two cargoes additionally rose to $10.75 per mmBtu in October, compared with $10.06 in September, $12.12 in August, and $18.96 in July.

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According to OGRA's notification, the RLNG sale cost for Sui Northern Gas Pipelines Limited (SNGPL) climbed by 13.9% at the transmission stage, reaching $15.94 per mmBtu in October against $13.99 in September.

Notably, the company's distribution-stage cost additionally climbed by 15.27%, reaching $16.396 per mmBtu compared with $14.22 in the previous month.

SSGCL supplies gas to consumers in Sindh and Balochistan. Its distribution system losses at present stand at 12.55%, compared with approximately 10.6% last year.

Meanwhile, SNGPL serves consumers in Punjab and Khyber Pakhtunkhwa. Its distribution losses were documented at almost 9%, against 7.47% in October last year. Pakistan Offers Saudi Arabia Tax-Free Oil Storage. Distribution Costs Push RLNG Rates Higher.

In practice, the difference between LNG import rates and the rates charged to consumers highlights the further costs involved in the supply chain.

Although the average delivered LNG cost stood at $10.75 per mmBtu in October, the distribution-stage rate reached $16.396 for SSGCL and $17.33 for SNGPL. These rates are $5.65 and $6.58 higher than the average import cost, respectively.

Notably, the extra costs include charges and margins collected by public-sector entities involved in importing and supplying LNG. Pakistan State Oil (PSO), Pakistan LNG Limited (PLL), and port authorities charge margins related to retainage and other services, amounting to 3.77% of the delivered ex-ship cost.

These charges come on top of distribution system losses of 8.97% for SNGPL and 12.55% for SSGCL. Stay Connected with ProPakistani. Obtain the latest news and stories wherever you prefer. Follow on Google Discover. Follow on Google News Join WhatsApp. See more ProPakistani stories in Google Search and Top Stories.

In short, gas Prices Increased by Up to 15.3% is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.