OGRA announces the largest increase in LNG sale prices on record after Pakistan purchased expensive spot cargoes amid Middle East tensions.
ISLAMABAD, Pakistan — WEB DESK: Pakistan’s Oil and Gas Regulatory Authority (OGRA) has announced a record increase in liquefied natural gas (LNG) sale prices for July, citing the higher cost of imported cargoes.
According to an official OGRA notification, the LNG sale price has been increased by up to $6.45 per MMBtu, marking the largest single increase on record.
New LNG Prices
Under the revised pricing:
- Sui Northern Gas Pipelines Limited (SNGPL) LNG sale price has been set at $25.83 per MMBtu.
- Sui Southern Gas Company (SSGC) LNG sale price has been fixed at $25.80 per MMBtu.
The revised prices will apply for July under the latest regulatory notification.
Higher Spot Cargo Costs
The sharp increase follows Pakistan’s purchase of five high-priced spot LNG cargoes during July as regional supply concerns intensified amid ongoing tensions in the Middle East.
The higher procurement costs significantly increased the weighted average cost of imported LNG compared with June, leading to the record rise in domestic LNG sale prices.
Regional Impact
Global LNG markets have experienced increased volatility due to geopolitical tensions in the Middle East, with disruptions to shipping routes and higher freight and supply costs contributing to elevated prices.
Pakistan relies on both long-term LNG supply contracts and spot market purchases to meet domestic energy demand. Increased dependence on spot cargoes typically exposes the country to fluctuations in international prices.
