RLNG gets costlier for third time in November

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1
A file photo of gas pipelines. — Reuters/File
A file photo of gas pipelines. — Reuters/File

ISLAMABAD: On top of about a 4.4 per cent increase over the past two months, the Oil and Gas Regulatory Authority (Ogra) on Tuesday notified up to 2pc further increase in the price of Regasified Liquefied Natural Gas (RLNG) for sales at the distribution stage by the two Sui gas companies for November, mainly because of higher system losses.

This was despite the fact that the average LNG price delivered at ship (DES) in November was about $0.75 per unit (million British thermal unit) lower than in October, as the utilities’ losses went up.

Karachi-based Sui Southern Gas Company Ltd (SSGCL) serves consumers in Sindh and Balochistan, and its system losses at the distribution stage stand at 12.55pc when compared to 10.6pc a month earlier. On the other hand, Lahore-based SNGPL provides gas to consumers in Punjab and Khyber Pakhtunkhwa and its system losses at the distribution stage were also reported at almost 9pc against 7.47pc last month.

According to the notification, the RLNG’s sale price for SNGPL at the transmission stage came down by 0.7pc to $11.43 per mmBtu for November against about $11.44 per mmBtu for October and $11.24 per unit in September. The sale price at distribution stage for SNGPL was, however, raised by 1.4pc to $12.4 per mmBtu for November against $12.23 per mmBtu in October and $12.01 in September.

On the other side, the RLNG sale price for SSGCL has been increased at the transmission stage by 0.07pc to $10.065 per mmBtu for November compared to $10.08 in October and $9.86 in September. The sale price at the distribution stage for the company was also increased by 1.97pc to $11.45 per mmBtu for the current month, against $11.23 in October and $11.01 per mmBtu in September.

Ogra said the increase in RLNG price was due to an increase in Unaccounted for Gas (UFG) loss percentage. However, a small reduction in SNGPL’s transmission price was a result of a decline in its UFG at the transmission stage. The UFGs for both companies at the distribution stage went up, unfortunately.

Ironically, the RLNG distribution prices for SSGCL $11.45 per mmBtu and $12.39 per mmBtu for SNGPL are almost $3.3 and $4.25 per mmBtu higher than the average delivered price ex-ship (DES), respectively.

Published in Dawn, November 19th, 2025

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