ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has announced an increase of more than 5% in the Regasified Liquefied Natural Gas (RLNG) prices for the month of April 2025, even as system losses by both Sui gas companies—SNGPL and SSGCL—have continued to decline.
The notification, issued outlined the new RLNG sale prices at both transmission and distribution levels, with notable hikes attributed primarily to higher delivered prices of LNG on arriving ships.
SNGPL Price Increase
For Sui Northern Gas Pipelines Limited (SNGPL), which supplies Punjab and Khyber Pakhtunkhwa, the RLNG price at the transmission stage has risen by 4.9%, climbing from $12.00/mmBtu in March to $12.59/mmBtu in April.
At the distribution level, the price has increased by 4.08%, going up to $13.48/mmBtu, compared to $12.95/mmBtu last month.
Interestingly, SNGPL also saw a slight reduction in its system losses, which now stand at 7.47%, down from 8.6% the previous month.
SSGCL Price Movement
In the case of Sui Southern Gas Company Limited (SSGCL), which serves Sindh and Balochistan, the price increase at the transmission stage is even sharper — a 5.44% jump to $11.27/mmBtu, compared to $10.69 last month.
However, unlike SNGPL, the distribution price for SSGCL has declined slightly by 1%, down to $12.59/ mmBtu from $12.726/mmBtu in March. This drop is attributed to a significant reduction in system losses, which fell from 16.16% to 10.6%.
Read More: RLNG Diversion to Domestic Sector Rises to 450 MMCFD Amid Energy Demand Surge
OGRA clarified that while the RLNG import cost increased, particularly the delivered price of LNG cargoes, the impact of reduced local losses helped ease prices at the consumer distribution stage—at least for SSGCL.
Breakdown of Price Adjustments
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SSGCL Transmission Price increased by $0.5812/mmBtu
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SSGCL Distribution Price decreased by $0.1345/mmBtu
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SNGPL Transmission Price rose by $0.59/mmBtu
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SNGPL Distribution Price increased by $0.53/mmBtu
Disparity Between DES and Sale Prices
There remains a significant gap between the ex-ship (DES) delivered price and the final RLNG sale prices to consumers. Despite the average DES price being $9.4/mmBtu, RLNG is now being sold at:
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$12.59/mmBtu (SSGCL)
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$13.48/mmBtu (SNGPL)
This pricing difference—$3.19 to $4.08/mmBtu higher—is primarily due to profit margins added by importers (PSO and PLL) and port authorities, alongside retainage charges and system losses:
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Retainage & Margins: ~3.15% to 3.1% of DES
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System Losses: 7.4% (SNGPL), 10.6% (SSGCL)
Also Read: OGRA April 2025 RLNG Price Adjustments: What Consumers Need to Know
Cargo Details and Import Strategy
The April price adjustment is based on eight LNG cargoes, all procured under long-term contracts with Qatar Gas via Pakistan State Oil (PSO). The average import cost came to $9.4/mmBtu, comprising:
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Six cargoes at 10.01% of Brent
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Two cargoes at a lower rate of $7.6/mmBtu
Notably, Pakistan LNG Limited (PLL) did not import any cargoes for April, having deferred scheduled shipments due to a slump in demand.
