LNG Price Cut: Up to 5% Reduction
- Recent reports indicate that the distribution prices of Re-Liquefied Natural Gas (RLNG) in Pakistan are substantially higher than the Delivered Ex-Ship (DES) price, despite increases in Unaccounted for...
- The National Electric Power Regulatory Authority (NEPRA) regulates the pricing of natural gas in Pakistan.
- This pricing structure is in contrast to the average DES price, with SSGCL's price being $3.30 higher and SNGPL's $4.25 higher per mmBtu.
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Recent reports indicate that the distribution prices of Re-Liquefied Natural Gas (RLNG) in Pakistan are substantially higher than the Delivered Ex-Ship (DES) price, despite increases in Unaccounted for Gas (UFG) for both major distribution companies. This discrepancy is attributed to profit margins charged by importers and port authorities, coupled with transmission and distribution losses.
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The National Electric Power Regulatory Authority (NEPRA) regulates the pricing of natural gas in Pakistan. Currently,RLNG distribution prices are exceeding the DES price,creating a financial burden on consumers. As of January 17,2026,the RLNG distribution price for Sui Southern Gas Company Limited (SSGCL) is $10.21 per mmBtu, while Sui Northern Gas Pipelines Limited (SNGPL) charges $11.27 per mmBtu.
This pricing structure is in contrast to the average DES price, with SSGCL’s price being $3.30 higher and SNGPL’s $4.25 higher per mmBtu.
Example: On January 17, 2026, SSGCL’s RLNG price of $10.21 per mmBtu was compared to an average DES price of approximately $6.91 per mmBtu, representing a 47.75% increase.
Pakistan State Oil (PSO) & Pakistan LNG Limited (PLL) – Import Costs
The elevated distribution costs are largely due to charges levied by the LNG importers, Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL), and port authorities. These entities apply a retainage rate of 3.77% of the DES price,effectively adding to the final cost of the gas.
Detail: Retainage is a fee charged for handling and logistical services related to the import and delivery of LNG. This fee is applied *on top* of existing losses within the transmission and distribution networks.
Evidence: According to the source material, PSO and PLL, along with port authorities, charge a 3.77% retainage fee on the DES price as of January 17, 2026.
Sui Northern Gas Pipelines Limited (SNGPL) & Sui Southern Gas Company Limited (SSGCL) – Transmission & Distribution Losses
In addition to import-related charges, important losses occur during the transmission and distribution of RLNG. Sui Northern Gas Pipelines Limited (SNGPL) experiences losses of 8.97% of the DES price, while Sui Southern Gas Company Limited (SSGCL) faces even higher losses of 12.55%.
Definition: These losses, frequently enough referred to as Unaccounted for Gas (UFG), are attributed to factors such as leaks, theft, and inaccuracies in metering.
Example: If the DES price is $6.91 per mmBtu, SNGPL incurs a loss of approximately $0.62 per mmBtu (8.97% of $6.91),and SSGCL incurs a loss of approximately $0.87 per mmBtu (12.55% of $6.91).
Dawn News – Source & Breaking News Check
The original data was published in Dawn on January 17th, 2026. A breaking news check conducted on January 18, 2026, at 12: