Govt hikes LNG price by 40%

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By Anzil Amin

ISLAMABAD: The federal government has approved a 40 per cent hike in Re-gasified Liquefied Natural Gas (RLNG) for the month of May.
The Oil and Gas Regulatory Authority (OGRA) Friday notified revised rates of Re-gasified Liquefied Natural Gas (RLNG) for the month of May.
According to the notification, the per MMBtu price of imported RLNG on the system of Sui Northern Gas Pipelines Company Limited (SNGPL) has been increased up to $6.2152, jacking up its rate to $21.8317.
Likewise, per MMBtu (Million British Thermal Unit) price of imported RLNG has been hiked up to $6.8772 for the Sui Southern Gas Pipelines Company (SSGC) system and the new rate will be $23.7873 per MMBtu.
In the previous month of April, the RLNG rate for SNGPL was fixed at $15.6165 per MMBtu and $16.9101 per MMBtu for SSGC.
The costly RLNG will increase the production cost of the industries while the power tariff will go further up in the country. The increasing production cost will also jack up the commodities rates besides affecting the industrial exports.
Former energy minister Hammad Azhar said in the Twitter message that the present government had purchased four priciest LNG cargoes in one go last month which resulted in the massive hike in the distribution price of RLNG for SNGPL by $6.21 to $21.831 and $6.87 to $23.78 for SSGC.
He added that the massive hike in RLNG rates will result in 40% higher gas prices for industries on LNG tariffs & expensive power generation.