Ogra Raises RLNG Prices by Around 15% for June

The Oil and Gas Regulatory Authority (Ogra) has announced an approximate 15% increase in Regasified Liquefied Natural Gas (RLNG) prices for June for both Sui gas utilities, primarily driven by expensive spot LNG imports arranged at short notice following supply disruptions caused by tensions in the Gulf region.

For Sui Northern Gas Pipelines Limited (SNGPL), the RLNG transmission tariff increased by 14.85%, rising from $15.62 per million British thermal units (mmBtu) in May to $17.94 per mmBtu in June. By comparison, the transmission price had been $10.45 per mmBtu in February.

At the distribution level, SNGPL’s RLNG price climbed 14.94% to $19.5228 per mmBtu, up from $16.9847 per mmBtu recorded in May.

Similarly, Sui Southern Gas Company Limited (SSGCL) recorded a 16% increase in its transmission-stage RLNG price, which rose to $16.368 per mmBtu in June from $14.093 in May. The corresponding transmission tariff had stood at $9.47 per mmBtu in December 2025.

SSGCL’s distribution-stage RLNG tariff also increased by 16.17%, reaching $18.64 per mmBtu compared with $16.042 per mmBtu a month earlier. The same tariff was $10.77 per mmBtu in December.

SSGCL supplies natural gas to consumers across Sindh and Balochistan, where distribution losses increased to 12.55%, compared with approximately 10.6% recorded a few months earlier.

Meanwhile, SNGPL, which serves Punjab and Khyber Pakhtunkhwa, reported distribution losses of nearly 9%, up from 7.47% in October.

The revised pricing reflects the continued impact of supply-chain expenses on the final RLNG cost borne by consumers.

According to Ogra’s pricing data, distribution-stage RLNG prices exceed the average delivered ex-ship cost by approximately $3.3 per mmBtu for SSGCL and $4.2 per mmBtu for SNGPL.

These additional costs include margins retained by LNG importers Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL), together with charges imposed by port authorities through retainage and other applicable margins amounting to 3.77% of the delivered ex-ship price.

The notified consumer prices also incorporate distribution losses of 8.97% for SNGPL and 12.55% for SSGCL.

Overall, June RLNG prices are approximately 15% higher than May levels, 56% above March, and 73% higher than those recorded in February.

The monthly RLNG basket price was calculated using four imported LNG cargoes in each of June, May, and April.

During June, three cargoes were imported under long-term agreements between Pakistan State Oil and QatarGas at an average cost of approximately $13.144 per mmBtu, compared with $9.2 per mmBtu in May.

Pakistan LNG Limited separately imported one LNG cargo in June at $19.134 per mmBtu, while its May cargo was purchased at $18.4 per mmBtu.

Although Pakistan State Oil maintains a long-term arrangement for up to 11 LNG cargoes per month, lower domestic energy demand has often resulted in part of those contracted volumes being diverted to the international spot market.

However, disruptions caused by transport constraints following the closure of the Strait of Hormuz and the suspension of gas operations prevented Qatar from supplying even the usual seven to eight monthly cargoes.

To address the resulting supply shortfall and rising electricity demand, the government reactivated Pakistan LNG Limited after nearly two and a half years of inactivity to procure LNG from the international spot market.

Since resuming operations, PLL has been importing approximately one LNG cargo each month on an emergency basis, typically within a procurement window of 48 to 72 hours.

Ogra further stated that out of PLL’s June cargo of 3.2 million mmBtu, approximately 2.4 million mmBtu will be allocated to K-Electric, while the remaining 0.8 million mmBtu will be supplied to SNGPL.

The sharp increase in RLNG prices has also significantly raised electricity generation costs, with RLNG-based power generation increasing to Rs31 per unit in May, compared with Rs13.72 per unit recorded in April.