LNG prices cut sharply in Pakistan - check new SNGPL and SSGC rates
The Oil and Gas Regulatory Authority (OGRA) issued a notification setting the revised LNG prices for both gas distribution systems.
New SNGPL rate
For the SNGPL system, the LNG price has been cut by $6.81 per MMBtu. The new rate has been fixed at $19.03 per MMBtu.
The previous LNG price for SNGPL was $25.84 per MMBtu. The latest reduction represents a substantial change in the rate charged for LNG supplied through the system.
SSGC rate also reduced
The LNG price for the SSGC system has also been reduced by $6.95 per MMBtu. The new price has been set at $18.13 per MMBtu.
Previously, LNG for the SSGC system was priced at $25.08 per MMBtu. The latest notification therefore brings a notable reduction in the LNG rate for the southern gas network.
What the reduction means
The lower LNG rates could reduce the cost of imported gas supplied through the two major gas systems. However, the effect on consumers will depend on how the revised LNG costs are reflected in the overall gas pricing structure.
The reduction comes as a major change in LNG pricing for both SNGPL and SSGC. The cuts are more than $6 per MMBtu for each system.
The key question now is whether the lower LNG cost will provide noticeable relief to gas consumers. The impact will depend on the wider pricing mechanism and other costs included in gas bills.
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