RLNG Prices Double for Pakistan After Suppliers Default

The average Regasified-Liquefied Natural Gas (RLNG) prices have been doubled as Pakistan LNG Limited (PLL) purchased two RLNG cargoes — due to defaulting of two long-term RLNG suppliers — from the spot market to plug a potential gas shortfall. According to the notification from Oil & Gas Regulatory Authority (Ogra), in the November month of the ongoing year, average RLNG prices stood at $15.68 per million British thermal units (mmBtu), 105 percent higher against the same month of the previous year. The notification highlighted that PLL’s purchase of two November RLNG cargoes was the major contributor to the average price increase. The average ex-ship import price was $24.1 per mmBtu, a whopping 327 percent higher compared to the same month last year ($5.64 per mmBtu). Further, PLL purchased a cargo at a historic high price of $30.6 per mmBtu in an emergency tender, as a long-term RLNG supplier reneged on its November shipment commitment. The only price relief gained was through the long-term contracts from Qatar for providing eighth RLNG cargoes at $9.68 mmBtu. Six cargoes from Qatar were sold at a DES price of $10.207 per mmBtu, based on 13.37 percent Brent, while two cargoes were sold at $7.887 per mmBtu, based on 10.2 percent Brent. Even PSO’s imports this year were over 66 percent higher than the same month last year when its average imports, including spot cargoes, were priced at $5.83 per mmBtu, according to the statistics. In total, the average RLNG price was $15.68 per mmBtu in November 2021 against $7.66 per mmBtu in November 2020.