Islamabad: The Oil and Gas Regulatory Authority (OGRA) announced a significant reduction in the liquefied natural gas LNG prices for the month of January. The price cut comes as a welcome development for household consumers experiencing heightened demand for heating during the colder months.
As per the notification issued by OGRA, the LNG prices for Sui Northern Gas Pipelines Limited (SNGPL) consumers has been slashed by $1.13, bringing it down to $13.68 per Metric Million British Thermal Unit (MMBtu). Similarly, the LNG price for the Sui Southern Gas Company Limited (SSGCL) consumers has been reduced by $1.21, settling at $14.24 per MMBtu.
OGRA highlighted that while the price reduction for January is significant, it is slightly lower compared to the reduction recorded in December 2023. Nonetheless, the move is expected to ease the financial burden on consumers during the winter season.
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In a parallel development, the Ministry of Energy (Petroleum Division) and Pakistan LNG Limited (PLL) announced the successful purchase of an LNG cargo from the State Oil Company of the Azerbaijan Republic (SOCAR) under a government-to-government framework agreement. This marks a crucial milestone in enhancing bilateral energy cooperation between Pakistan and Azerbaijan.
The framework agreement, signed in July 2023, allows SOCAR to offer one LNG cargo per month to PLL, contingent upon the availability of LNG reserves in Pakistan. The cargo acquired is anticipated to reach Pakistan by February 2024, ensuring a reliable and continuous supply of LNG to meet the country’s growing energy needs and sustain various industries. This strategic move underscores Pakistan’s commitment to diversifying its energy sources and fostering international partnerships in the energy sector.