Tag: natural gas

  • OGRA notifies major gas price hike for November

    OGRA notifies major gas price hike for November

    The caretaker government’s decision to implement a gas price increase of over 172 per cent for non-protected domestic consumers has left many shocked and outraged.  

    Starting on November 1, the revised prices are set to impose a significant financial burden on households already grappling with financial difficulties. 

    According to the notification released by the Oil and Gas Regulatory Authority (OGRA), the new gas prices represent a substantial hike across various consumption levels.  

    For instance, customers consuming 100 cubic metres of gas per month will now be charged Rs1,000, up from the previous rate of Rs400. Those using 150 cubic metres will see their monthly costs rise from Rs600 to Rs1,200. 

    On the other hand, the price for a monthly consumption of 200 mmbtu has increased to Rs1,600 from the previous Rs800, and for users consuming 300 mmbtu monthly, the cost has risen to Rs3,000 from Rs1,100. 

    Moreover, the charge for consuming 400 mmbtu of gas per month has gone up from Rs2,000 to Rs3,500. For those using more than 400 mmbtu per month, the new rate is Rs4,000, up from the earlier Rs3,100. 

    This significant and unexpected price surge is anticipated to have a severe impact on household budgets, especially for low-income families who heavily depend on natural gas for cooking and heating. 

  • Gas shortage worsens in Pakistan amid rising demand and low reserves

    Gas shortage worsens in Pakistan amid rising demand and low reserves

    Minister of State for Petroleum, Musadik Malik, stated on Wednesday that the general public cannot receive gas 24/7 due to a decline in the commodity’s reserves, which is a significant reason. Pakistan relies heavily on natural gas for energy, and with increasing demand and insufficient supply, load shedding has become a daily occurrence in many areas of the country. This situation worsens during Ramadan when Pakistanis consume more gas for cooking and other purposes, particularly during sehri and iftar timings.

    During a conversation with journalists in Karachi, the minister mentioned that gas load shedding would end during sehar and iftar but did not specify when. “We cannot provide gas for 24 hours as our reserves have decreased,” he stated. Recently, the issue of gas scarcity in Karachi has caught the attention of Prime Minister Shehbaz Sharif, who has directed relevant officials to ensure an uninterrupted supply of the commodity. He has instructed that the supply of gas must be monitored, and no negligence should be tolerated.

    Due to the widening gap between gas supply and demand, the Sui Southern Gas Company (SSGC) has announced its decision to suspend supplies to captive power plants and industries. The gas utility has stated that this decision has been made due to low gas supply, and the volume of gas in pipelines has decreased. In response, the Karachi Chamber of Commerce and Industry (KCCI) has called for immediate government action to address the shortage of gas supply to Karachi’s industries, stating that the industries cannot operate without gas and would be forced to halt production.

    KCCI President Muhammad Tariq Yousuf said, “It is highly unfair to have such an attitude towards Karachi’s business community, which, despite facing so many challenges, contributes around 54 per cent in terms of exports and more than 68 per cent in terms of revenue.”

    While talking to journalists, Malik said that his visit to Karachi was aimed at resolving the gas supply issues faced by the people and urged them to pay their utility bills. “The gas bill of the rich and poor has been separated; rich people will have to pay more now,” he said, adding that the separation of gas bills for the rich and the poor was now in effect.

  • Gas crisis to worsen in Pakistan as Italy-based supplier refuses to deliver LNG cargo in February

    Gas crisis to worsen in Pakistan as Italy-based supplier refuses to deliver LNG cargo in February

    The Italian LNG trading company ENI has intimated that it won’t be able to deliver its LNG cargo scheduled on February 6, which might cause the gas situation in Pakistan to worsen in the coming days.

    The report has troubled the senior officials in the Petroleum Division since the country is already suffering from a severe gas shortage, with some major cities getting little to no gas pressure.

    In accordance with its petrol load management strategy, the government assured home users a supply of gas for cooking during the winter months for three hours from 6 am to 9 am, two hours from 12 pm to 2 pm for lunch, and three hours from 6 pm to 9 pm for dinner.

    According to authorities, the effect of ENI’s disengagement will be seen as a reduction in supplies to the power sector and the non-availability of the anticipated 325mmcfd supply for the sector next month.

    End users will receive expensive electricity as boiler oil-based electricity’s reliance grows. The captive power plants will be delivered gas at 50 per cent and supply to fertiliser plants, compressed natural gas (CNG) and local industry shall remain discontinued.

    The Petroleum Division had earlier asserted that the ENI will not default starting in January 2023, however, this is untrue.

    The February supply setback is due to an occurrence of Force Majeure, according to an ENI representative, who also confirmed the news, saying that ENI is not in any way benefited from the circumstance.

    According to The News, ENI defaulted five times last year, failing to deliver LNG cargoes in the months of March, May, July, September, and November.

  • OGRA announces 13% reduction in RLNG price

    OGRA announces 13% reduction in RLNG price

    The Oil and Gas Regulatory Authority (Ogra) has announced a 13 per cent decrease in the cost of re-gasified liquefied natural gas (RLNG) for this month, as the international spot market remained out of reach for Pakistan and the average cost of cargos under a long-term contract fell slightly as oil prices fell.

    According to Brecorder, the basket RLNG price was also lower owing to the second LNG contract with Qatar, which is available to Pakistan at 10.2 per cent of Brent, included four cargos instead of the usual two. The number of LNG cargos from Qatar under the first contract was four for the period, rather than the usual six, at a rate of 13.37 per cent of Brent.

    The average basket price for LNG supply at the import stage (delivered ex-ship), according to a notification from Ogra on Monday, was calculated to be $11.56 per million British thermal unit (mmBtu) for Pakistan State Oil (PSO) for eight cargos (all from Qatar) and $11.856 per mmBtu for Pakistan LNG Limited (PLL) for one cargo under another long-term contract with an LNG trader at 12.14 per cent of Brent.

    As a result, the price of imported RLNG for two gas firms, SSGCL and SNGPL, decreased by roughly $2.2 to $2.3 per mmBtu, or about 13 per cent. SNGPL’s sale price was announced as $14.78 per mmBtu and SSGCL’s as $15.19 per mmBtu. In addition, the price per mmBtu at transmission stage fell by 15–16 per cent in July, from $19.07 to $18.8 per unit in June, to $16.