ISLAMABAD: After a delay of over 3 weeks, the Oil and Gas Regulatory Authority (Ogra) on Friday alerted ordinary price for re-gasified liquefied gas (RLNG) for last month (September) at regarding $15.35 per million British thermal device (mmBtu), which mores than 16 percent greater than the price of previous month (August).
The RLNG price notification, which is regularly provided by the regulatory authority in the very first week of each month, was “postponed due to the Lahore [High] Court orders”, a speaker for Ogra informed Dawn. The costs were notified after addressing the court’s observations.
The RLNG rate for September 2021 is nearly 122pc more than that for the same month last year when it stood at about $6.93 per mmBtu.
According to the Ogra alert, average delivered ex-ship (DES) cost for Pakistan LNG Limited (PLL) stood at $13.105 per mmBtu for September this year, almost 27pc more than that for August. PLL’s two freights were delivered at $8.45 as well as $8.687 per mmBtu as a result of lasting agreements, yet its typical rate rose as a result of four place cargoes at considerably higher prices between $15.20 and $15.50 per mmBtu.
On the other hand, ordinary DES rate at $11.40 per mmBtu for Pakistan State Oil (PSO) was about 15pc less expensive than that of PLL for the exact same month mainly due to its significant imports through long-lasting contracts at about $9.7 per mmBtu or 13.37 computer of Brent.
This was despite the fact that PSO had approved one of the freights at a record 24.54 computer of Brent or $17.84 per mmBtu. PSO’s typical price in September this year was 6.23 computer greater than that of August and about 95pc greater than September 2020.
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PSO’s most costly LNG cargo was supplied by asset investor Vitol at 24.5456 computer of Brent (about $17.86 per mmBtu)– the most costly thus far consisted of in RLNG prices– on Sept 26-27. Even higher costs would certainly comply with in October as well as November due to also more expensive freights already scheduled.
The regulator maintained the allowance for system losses unchanged at 6.68 computer for Sui Northern Gas Pipelines Limited (SNGPL) and 6.42 pc for Sui Southern Gas Firm Limited (SSGCL) which the two business had challenged in numerous courts, consisting of Lahore and Islamabad high courts.
In a relevant however separate determination, Ogra claimed it needed to individually determine real typical unaccounted for gas (UFG) of last financial year in respect of RLNG materials for its rates. It stated that throughout committed hearings under the court orders, the gas firms maintained that Ogra had identified their actual UFG as part of yearly last revenue need decision which need to additionally be adopted for RLNG rates.
“This understanding is completely irregular with the ECC (Economic Coordination Board) choices as well as a misconception on the part of gas companies, whereby, in respect of UFG figures, the volumes declared by the firms had actually been adjusted to get to their proper claims in respect of aboriginal system. This improvement can not be constructed as determination of ‘real ordinary UFG’ for RLNG rates purpose when gas business themselves admit that no separate dimension mechanism is in location and volumes are being randomly assigned to RLNG materials, which remains in total comparison to ‘ring-fencing’ [of imported gas] as required by ECC decisions,” the regulatory authority observed.
It claimed that till an appropriate UFG research study was finished that was currently in progress, the prevailing UFG of 6.68 pc and also 6.42 pc for SNGPL and also SSGCL, specifically, would certainly stay validly suitable.