ISLAMABAD: As value of rupee plunges while an increase in global liquefied natural gas (LNG) prices, the rates of imported gas in Pakistan have jumped up substantially.
The Oil and Gas Regulatory Authority (Ogra) – the industry regulator – has set the LNG price for consumers of Sui Northern Gas Pipelines Limited (SNGPL) at $12.8 per million British thermal units (mmbtu) and for consumers of Sui Southern Gas Company (SSGC) at $13.27 per unit.
These prices include terminal charges, transmission losses, Port Qasim charges and importer margins as well.
Import cost came in at $10.11 per mmbtu for Pakistan State Oil and $10.40 per unit for Pakistan LNG Limited.
However, in October 2015, the LNG price was at a lower level at $8.63 per mmbtu when crude oil prices – to which the imported gas rate was pegged – had weakened.
LNG suppliers of Pakistan have entered into contracts with Qatar, Italian energy giant Eni and global commodity trader Gunvor. Prices for LNG supply range between 11.6% and 13.37% of crude oil rate.
Pakistan has built two LNG terminals that have the capacity to handle 1.2 billion cubic feet of LNG per day, but the required quantity did not arrive at the terminals because of weak demand for imported gas.
