On January 2025, the Oil and Gas Regulatory Authority (OGRA) made adjustments to the prices of imported Liquefied Natural Gas (LNG). These adjustments vary for Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipeline Limited (SNGPL) consumers.
| Company | LNG Price Change |
|---|---|
| SSGC | Price Increased |
| SNGPL | Price Decreased |
SSGC Consumers See Price Increase
For SSGC consumers, LNG prices have increased for January 2025. At the transmission stage, the price rose by 0.44%, going from $10.5415 per mmbtu in December to $10.5883 per mmbtu. Similarly, at the distribution stage, the price rose by 0.45%, from $12.5456 to $12.6014 per mmbtu.
| Stage | December Price | January Price | Change (%) |
|---|---|---|---|
| Transmission | $10.5415 | $10.5883 | +0.44% |
| Distribution | $12.5456 | $12.6014 | +0.45% |
SNGPL Consumers Benefit from Price Reduction
In contrast, SNGPL consumers will benefit from a price reduction in January 2025. The LNG price at the transmission stage decreased by 1.98%, from $11.9659 per mmbtu in December to $11.7288 per mmbtu. Similarly, at the distribution stage, the price dropped from $12.8997 to $12.6667 per mmbtu.
| Stage | December Price | January Price | Change (%) |
|---|---|---|---|
| Transmission | $11.9659 | $11.7288 | -1.98% |
| Distribution | $12.8997 | $12.6667 | -1.81% |
Reasons for Price Changes
The price increase for SSGC consumers is linked to a slight rise in the DES (Delivered Ex-Ship) price. This small increase has led to a marginal rise in Re-Gasified Liquefied Natural Gas (RLNG) prices at both transmission and distribution stages for SSGC consumers.
On the other hand, the reduction in RLNG prices for SNGPL consumers is due to a decrease in the price differential, which has been accounted for in the RLNG sale price.
| Company | Reason for Price Change |
|---|---|
| SSGC | Rise in DES price |
| SNGPL | Decrease in price differential |
Impact of LNG Price Adjustments
The price adjustments for LNG can have varying effects on consumers. For SSGC consumers, the price increase could result in higher bills for those using gas for heating, cooking, and other purposes. On the other hand, the price reduction for SNGPL users could lead to lower gas costs, benefiting households and businesses in the region.
| Company | Impact on Consumers |
|---|---|
| SSGC | Higher bills for consumers |
| SNGPL | Lower bills for consumers |
Summary
The Oil and Gas Regulatory Authority (OGRA) has adjusted LNG prices for January 2025. SSGC consumers will face a slight increase in prices, while SNGPL consumers will benefit from a decrease. These adjustments are influenced by changes in the DES price and price differentials. The impact will be felt differently by consumers based on which gas company they are served by.
