LAHORE MIRROR — The Oil and Gas Regulatory Authority (OGRA) has cut liquefied natural gas (LNG) prices by up to 27.71 per cent, issuing a notification announcing significant reductions in rates for the country’s two major gas distribution systems.
Under the revised rates, LNG prices for the Sui Northern Gas Pipelines Limited (SNGPL) system have been reduced by $6.81 per million British thermal units (MMBtu), while rates for the Sui Southern Gas Company (SSGC) system have been cut by $6.95 per MMBtu.
According to the notification, the new LNG price for the SNGPL system has been set at $19.03 per MMBtu, down from the previous rate of $25.84 per MMBtu.
Similarly, the LNG price for the SSGC system has been reduced to $18.13 per MMBtu from $25.08 per MMBtu, following a cut of $6.95 per MMBtu.
The decision is expected to provide substantial financial relief to consumers connected to both major gas distribution systems.
LNG prices in Pakistan are directly linked to fuel prices in the international market and import costs. OGRA reviews LNG prices each month, taking into account fluctuations in global fuel markets.
The substantial reduction is expected to lower production costs for the industrial sector and help ease energy costs for the CNG sector, fertiliser plants and power stations.
The reduction could also help contain electricity generation costs and have a positive impact on the broader economy.
