ISLAMABAD: With system losses touching a massive 14.5 per cent, the Oil and Gas Regulatory Authority (Ogra) on Thursday notified up to 8pc reduction in the sale price of regasified liquefied natural gas (RLNG) for two Sui gas companies — SSGCL and SNGPL — for the current month with effect from Jan 1 owing to lower international prices.

The RLNG sale price for Karachi-based Sui Southern Gas Company Ltd has been cut at the transmission stage by 7.8pc to $12.229 per million British thermal unit (mmBtu) from $13.264 per mmBtu in December 2023. It was $12.05 in November and $11.47 in October.

The sale price at the distribution stage was decreased by 7.81pc to $14.245 per mmBtu for January, down from $15.45 in December 2023. It stood at $14.034 in November and $13.36 in October.

Likewise, the RLNG’s sale price for Lahore-based Sui Northern Gas Pipelines Ltd has been reduced by 7.55pc to $12.65 per mmBtu for January at the transmission stage against $13.68 in the preceding month. It has gone up when compared to $12.47 in November and $11.86 in October. The sale price at the distribution stage for SNGPL was slashed by 7.58pc to $13.67 per unit for January, down from $14.8 in December. It was $13.49 per unit in November and $12.84 in October.

The overall decrease in absolute terms for SSGCL’s transmission price amounted to $1.035 per unit and $1.2 per unit at the distribution point. The increase in RLNG price for SNGPL at transmission stood at $1.33 per mmBtu and $1.12 per unit for distribution.

The major reason behind lower RLNG prices for SNGPL despite its larger distribution network and greater distance from ports when compared to SSGCL, according to Ogra’s tariff sheet, is the significantly higher system losses of the SSGCL.

Ogra said the SSGCL’s transmission and distribution system losses, commonly described as unaccounted-for-gas (UFG), stood at 14.48pc in January compared to SNGPL’s 8.61pc.

Published in Dawn, January 19th, 2024