RLNG prices slashed by up to 2.72% for December 2024

Reduction in prices would benefit those sectors and households dependent on RLNG for the core supply of energy
An undated image of a sui gas.— Canva
An undated image of a sui gas.— Canva 

The government announced on Saturday, December 21, a reduction in the average sale price of re-gasified liquefied gas (RLNG) for December 2024, lowering the cost of imported fuel by up to 2.72% compared to last month.

This move aims to provide relief to industries and households relying on natural gas during the winter season.

Reason behind RLNG price cut

The Oil and Gas Regulatory Authority (Ogra) announced the price cut on the grounds of a reduction in the delivered ex-ship (DES) price. The DES price is the cost of bringing LNG to Pakistan's shores, which has a major influence on local RLNG prices.

This price cut has been in effect since December 1, 2024, both for Sui Northern Gas Pipelines Limited (SNGPL) and the consumers of Sui Southern Gas Company Limited (SSGCL).

For consumers of SNGPL, the transmission price will decrease by 3.26% to $11.9659 per MMBtu, while the distribution price shall decline by 2.72% to $12.8997 per MMBtu.

For SSGCL consumers, the transmission price would decline by 6.02% to $10.5415 per MMBtu, while the distribution price would decline by 1.99% to $12.5456 per MMBtu.

According to Ogra, the reduction in prices was due to a decline in global LNG market trends and shipping costs that have affected DES prices. The reduction in prices would benefit those sectors and households dependent on RLNG for the core supply of energy, thereby taking off some of the heat during the colder months of the year when energy demand is at its peak.