Business

Govt hikes RLNG tariff for Sui gas companies

Published

1 year ago

Farwa

Increase attributed to rise in RLNG Brent prices.
Ogra reduced RLNG prices seven times since January.
Pakistan relies on LNG to meet nearly one-third of its demands.

ISLAMABAD: The government has approved a hike of up to half a dollar per MMBTU or 3.8% in the prices of re-gasified liquefied natural gas (RLNG) for both the Sui gas companies for October 2023, The News reported on Tuesday.

The Oil and Gas Regulatory Authority (Ogra) has released a notification announcing that the price of RLNG for consumers of Sui Northern Gas Pipelines Limited (SNGPL) has increased by $0.496 per MMBTU (3.87%) from the previous month. Similarly, the cost of RLNG for consumers of Sui Southern Gas Company (SSGC) has increased by $0.508 per MMBTU (3.8%) compared to September prices.

The spokesperson for Ogra said, “In accordance with the policy guidelines of the federal government, Ogra has determined the RLNG prices for Sui Gas companies, effective from October 1, 2023,” adding that the increase in RLNG prices is attributed to the rise in RLNG Brent prices in the international market. It announced the provisional prices for the RLNG sale for October.

The weighted average sale price for Sui Northern Gas Pipelines Limited (SNGPL) consumers has been set at $13.3332 per Million Metric British Thermal Units (MMBTU), while Sui Southern Gas Company (SSGC) consumers will be charged $13.8716 per MMBTU.

In September, the RLNG prices set by OGRA were $12.8366 per MMBTU for SNGPL consumers and $13.3636 per MMBTU for SSGC consumers.

The fluctuation in RLNG prices was notable throughout the year. Ogra reduced RLNG prices seven times since January, with two increases recorded in May, September, and now in October. The price started declining in January, with a reduction of up to 2.2%. This was followed by further decrease of 4.3% in February, 3.16% in March, and 0.47% in April. It was increased by 1.3% in May 2023 but then decreased again in June (2.55%), July (1.5%), and August (1.3%). In September, there was an increase of 3.08% in the RLNG price.

The recently revised prices for RLNG include several elements, such as charges for LNG terminals, transmission losses, port charges, and margins for state-owned importers, namely Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL).

They were determined based on the import of eight cargoes by PSO and one cargo by PLL.

In a noteworthy development, the Asian Platts JKM (Japan Korea Marker) LNG price rose to $18.585 per mmBtu on October 23, 2023, marking a 24% increase from the previous month when it was $14.99 per mmBtu on September 25, 2023. Likewise, since August 25, 2022, (when the LNG price peaked at $69.955/mmBtu), its price has reduced by $51.37/mmBtu or 73.4%. JKM is the LNG benchmark price assessment for the spot physical cargoes.

Pakistan relies on LNG imports to meet nearly one-third of its energy demands. However, when comparing the RLNG prices in October 2023 with those of October 2022, the cost for SNGPL consumers decreased by only 9.8%, while SSGC clients experienced an 8.65% reduction over the year.

Business

With its second-largest surge ever, PSX approaches 114,000 points.

Published

2 days ago

Farwa

Driven by renewed activity from both private and government financial institutions, the Pakistan Stock Exchange (PSX) saw its second-largest rally in history on Monday.

The market regained many important levels in a single trading session as it rose with previously unheard-of momentum.

Intraday trading saw a top increase of 4,676 points, and the PSX’s benchmark KSE-100 Index gained 4,411 points to settle at 113,924 points. This impressive rebound demonstrated significant investor confidence by reestablishing the 100,000, 111,000, 112,000, and 113,000-point levels.

The market also saw the 114,000-point limit reestablished during the trading session.

The positive tendency was reflected when the market’s heavyweight shares touched its upper circuits. Among the most busiest trading sessions in recent memory, an astounding 85.78 billion shares worth a total of Rs55 billion were exchanged.

Experts credited the spike to heightened institutional investor activity and hope for macroeconomic recovery. Considered a major market recovery, the rally demonstrated the market’s tenacity and development potential.

Business

In interbank trade, the Pakistani rupee beats the US dollar.

Published

1 week ago

Farwa

In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

Published

1 week ago

Farwa

The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.