ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) on Friday notified about 2.4 per cent cut in the price of regasified lique­fied natural gas (RLNG) for Novem­ber as the international spot market remained out of reach for Pakistan and an average cost of cargoes under long-term contract slightly came down with world oil price.

The basket RLNG price was based on a total of 10 cargoes, nine under the two LNG contracts with Qatar and another from a private supplier — also under a long-term contract — and was worked out at $11.29 per million British thermal unit (mmBtu).

This included the cost of LNG delivery ex-ship (DES) of five cargoes from Qatar under the first LNG contract worked out at $12.55 per mmBtu at the rate of 13.37pc of Brent. The cost of four cargoes under the second contract also from Qatar were priced at DES $9.57 per mmBtu at the rate of 10.2pc of Brent. Another cargo was priced at $11.397 per mmBtu as it is indexed at the rate of 12.14pc of Brent.

According to a notification issued by Ogra on Friday, the average basket price for the supply of LNG at the import stage (delivered ex-ship) worked out at $11.29 per mmBtu for Pakistan State Oil’s nine cargoes from Qatar in November compared to $11.56 per mmBtu a month earlier.

The import of LNG by Pakistan LNG Ltd (PLL) was priced at $11.39 per mmBtu in November compared to $11.856 per mmBtu for one cargo a month earlier.

The imported regasified liquefied natural gas to two gas companies — SSGCL and SNGPL — thus dropped by about 33 to 34 cents per mmBtu, respectively, or about 2.4pc. The sale price for SSGCL was notified at $14.81 per mmBtu for November against $15.19 last month.

Likewise, the sale price for SNGPL was fixed at $14.44 per mmBtu for November instead of $14.78 per mmBtu last month.

This is on top of about a 13pc drop in RLNG price last month preceded by 15-16pc drop in July when compared to $19.07 per mmBtu.

It may be noted that LNG’s basket price in May had touched a record $22-24 per mmBtu owing to a string of spot cargoes procured by the PDM’s coalition government in the first month in office to meet energy shortages.

Since then, repeated efforts to import more gas through spot tenders have remained futile owing to tight supply conditions and record prices in the international market following the Russian-Ukraine war. As such, all nine cargoes each in October and September were available to Pakistan under long-term contracts, mostly with Qatar, except one from another supplier.

Mainly because of expensive spot imports in June, the average LNG-based power generation cost amounted to Rs28.4 per kWh (unit) — the second most expensive source of power generation after Rs36.2 per unit on furnace oil.

Published in Dawn, November 12th, 2022

Now you can follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Worsening hunger
Updated 08 Dec, 2022

Worsening hunger

THAT the dollar liquidity crunch has started hurting the import of essential items such as vegetables and raw...
Bannu beheading
Updated 08 Dec, 2022

Bannu beheading

The state must take up the cudgels and neutralise barbarism before it spreads.
Smog misery
08 Dec, 2022

Smog misery

IF 2022 has taught us anything, it is that generations of reckless disregard for Mother Nature has accrued very ...
Disquiet on the western front
Updated 07 Dec, 2022

Disquiet on the western front

IT is very difficult for Pakistan to be delinked from Afghanistan, because of reasons of geography and history.
Fuel from Russia
07 Dec, 2022

Fuel from Russia

THE apparent headway made with Russia for the purchase of its crude oil, petrol and diesel at discounted prices is a...
More women SHOs
07 Dec, 2022

More women SHOs

IT is encouraging to see more employment avenues opening up for women in Pakistan, with an increasing number of...