Pakistan raises RLNG prices for August on higher terminal charges

Pakistan’s Oil & Gas Regulatory Authority has increased the prices of re-gasified liquefied natural gas (RLNG) by up to 1.46% for August, impacting consumers of both Sui Northern Gas Pipelines Ltd. (SNGPL) and Sui Southern Gas Company Ltd. (SSGCL).

The adjustment, driven by a marginal uptick in terminal charges, reflects a rise of up to $0.1548 per million British thermal units (MMBtu) across transmission and distribution costs, in line with federal policy directives.

For SNGPL consumers, the transmission price rose 1.32% to $10.977/MMBtu, up $0.1432 from July, while the distribution rate increased 1.33% to $11.733/MMBtu, a $0.1543 hike.

SSGCL’s revised transmission price climbed 1.46% to $9.6097/MMBtu, compared to $9.4713/MMBtu last month. Its distribution rate also rose 1.46%, reaching $10.7285/MMBtu from July’s $10.5737/MMBtu.

The new RLNG prices incorporate charges for LNG terminals, transmission losses, port fees, and margins for state-run importer Pakistan State Oil (PSO).

Ogra said the weighted average sale prices were calculated based on 10 cargoes imported by PSO under two long-term contracts with Qatar, priced at 13.37% and 10.20% of Brent crude, respectively. Five cargoes were procured at each slope, Ogra added.

Meanwhile, Asian spot LNG prices declined this week amid soft demand and robust storage levels. The average price for September delivery into northeast Asia fell to $11.65/MMBtu from $11.90/MMBtu last week, according to industry estimates.

October delivery contracts were pegged at $11.45/MMBtu.

Analysts expect further price softening next week, citing high Chinese inventories, stable Pacific supply, and seasonal temperatures contributing to a bearish market outlook.