Govt Hikes RLNG Rates for September

The government has increased the average monthly sale price of re-gasified liquefied natural gas (RLNG) by roughly 3 percent due to heavy transmission and distribution losses ($1.2 million per cargo) and the impact of international prices ailing the domestic energy sector.

On Tuesday, the Oil and Gas Regulatory Authority (OGRA), effective 1st September 2023, increased RLNG sale price for SNGPL customers by 2.76 percent to $11.86 per mmBtu at the transmission stage and 2.79 percent to $12.84 per mmBtu at the distribution stage.

Similarly, the rates for SSGCL consumers have increased to $11.47 per mmBtu at the transmission stage and to $13.36 per mmBtu at the distribution stage.

According to OGRA’s tariff sheet, SSGCL reported extortionately high system losses which will be paid for by consumers as per the latest revision in RLNG rates. SSGCL’s distribution system losses were 14.36 percent compared to 8.23 percent for SNGPL. Meanwhile, SSGCL’s transmission losses stand at 0.12 percent, compared to SNGPL’s 0.38 percent.

SSGCL’s RLNG distribution price of $13.36 per mmBtu and SNGPL’s price of $12.84 per mmBtu are over $3.64 and $3.12 per mmBtu more than the delivered price ex-ship (DES), respectively. This is because PSO and PLL levy profit margins on account of retainage and margins at the rates of 3.15 percent and 3.1 percent of DES price, respectively, on top of SNGPL’s ~8.8 percent loss and SSGCL’s ~14.5 percent loss.

The basket RLNG price was calculated using nine cargoes, eight from the two LNG contracts with Qatar and one from a private provider – also under a long-term contract – and was $9.76 per mmBtu at the import stage DES.

According to OGRA, the rate hike is in accordance with federal government policy guidelines released by the Energy Ministry.

Source: Pro Pakistani