OGRA notifies reduction in LNG prices for December

KARACHI: The Oil and Gas Regulatory Authority (OGRA) has announced a reduction in liquefied natural gas (LNG) prices for December 2024, ARY News reported.

According to the notification, the LNG price for Sui Northern Gas Pipelines Limited (SNGPL) has been reduced by $0.36 per million British thermal units (MMBTU). Similarly, the LNG price for Sui Southern Gas Company Limited (SSGCL) has been reduced by $0.25 per MMBTU.

The new LNG price for SNGPL has been set at $12.89 per MMBTU, while the new price for SSGCL is $12.54 per MMBTU. The reduced prices will be applicable for the month of December.

Earlier, Pakistan announced the successful procurement of a second LNG cargo from the State Oil Company of the Azerbaijan Republic (SOCAR).

According to the statement, Energy Ministry and Pakistan LNG Ltd (PLL) secured LNG cargo agreement from SOCAR.

In July last year, Pakistan had signed a landmark framework agreement with Azerbaijan for LNG procurement on flexible terms.

Also read: Pakistan buys second LNG cargo from Azerbaijan

Pakistan also purchased a liquefied natural gas shipment to address fuel deficit this winter.

Pakistan LNG Limited (PLL) has awarded tender to Oman’s OQ Trading for a spot LNG cargo to be delivered in January.

State-run PLL has secured the shipment at a price premium to the spot market due in part to Pakistan’s credit risk, sources said.

Pakistan has struggled to procure spot cargoes of LNG after global prices spiked last year following Russia’s invasion of Ukraine, leaving it to face widespread power outages.

The PLL had earlier invited from international suppliers for the supply of one LNG cargo on a Delivered Ex-Ship (DES) basis at Port Qasim, Karachi.

PLL has been mandated by the government to import and sell natural gas, LNG and re-gasified LNG.

It procures LNG from international markets and enters into onward arrangements for the supply of gas to end users, managing the whole supply chain of LNG.