RLNG price hike notice withdrawn by Ogra – Journal
ISLAMABAD: Rarely, the Oil and Gas Regulatory Authority (Ogra) on Tuesday withdrew a notification it had published the day before, which increased the prices of regasified liquefied natural gas (RLNG) by more than 5.5% for the current month based on an expensive cargo of $ 20,055 per mmBtu.
“As informed by PSO (Pakistan State Oil) that they scrapped the cargo with an offer price of 27.87pc of Brent, the RLNG price notified on August 2 is no longer valid and the RLNG price notification from August is withdrawn, ”says a revised notification issued by the regulator.
Informed sources said the regulator had to withdraw the notification under pressure from the Energy Ministry, which has been criticized by the public for acquiring expensive LNG import cargoes as part of a bad deal. management of various fuels, with electricity consumers facing load shedding in wet weather conditions despite alleged excess generation capacity. .
Energy Minister Hammad Azhar, via his social media account, launched a scathing attack on a Dawn report that showed the most expensive PSO cargo in the Ogra’s RLNG notification, alleging a “false report Little knowing that Ogra’s notification was based on PSO’s own data. His ministry did not issue any press release.
PSO also, in a separate social media statement, denied making the costly deal in the cash market and claimed it canceled the offer and re-invited a new offer, saying it canceled the deal. ‘bid because it was’ high’ and ‘unacceptable.’ However, the country’s largest company in terms of sales and the largest fuel supplier did not present the results of the bid and its decision to ‘cancel the offer on its official website.
Informed sources have said that following the Dawn report based on an official notification, PSO informed Ogra via email of their decision to drop the expensive takeover bid. Ogra has withdrawn the previous notification of the sale price of RLNG.
PSO also denied that it kept the results of the tender secret, insisting that it always maintains absolute transparency in all of its transactions and business practices, but did not indicate on its website where these results. have been made public. “All the results of the bids are published on the PSO website in accordance with the rules of the Public Procurement Regulatory Authority (PPRA),” he added.
The company said it has entered into a new long-term supply contract with Qatar Petroleum (QP), whose supplies will begin in January 2022, which will further reduce the price of the basket of LNG imported into the country. This agreement was announced earlier this year by SAPM Nadeem Babar.
In view of the higher demand during the coming winter season, PSO has exercised the option in the new QP contract to bring four additional cargoes in November and December at the new contract prices, which are expected to be well below the price of the walked during the winter, he mentioned.
Ogra said it issued the RLNG price notification which was calculated based on the data available at the time of the calculation. “As the prices are for the month in advance, many pricing elements are calculated for pricing on a provisional basis based on the data available at that time, which was then updated by Ogra on the basis of actual costs incurred ”.
At the time, however, thousands of motorists using compressed natural gas (CNG) as transportation fuel had been billed at the higher rates already notified a day earlier and could not be traced or verified as having been. overcharged.
The August 2 notification issued by Ogra regarding the “Determination of the Weighted Average Provisional Selling Price of LNG” indicates that the LNG price for the month was calculated in light of the Federal Government’s decision on allocation and pricing LNG and advice from the Department of Energy.
The LNG prices reported by Ogra – and as mentioned in the Dawn report – were based on data / prices provided by PSO. Ogra does not have its own LNG data collection mechanism and relies only on the prices contracted and reported by LNG importers – PSO and Pakistan LNG Ltd (PLL).
Prior to the report, PSO had not released a public statement on the cancellation or the tender. Until this late night report was filed, Ogra had not issued any new RLNG price notifications.
Posted in Dawn, le 4 August 2021