OGRA Announces Steep July Price Increase
Pakistan has sharply increased re-gasified liquefied natural gas prices for July 2026 after disruptions to Qatari supplies forced the country to purchase expensive cargoes from the international spot market.
The Oil and Gas Regulatory Authority announced price increases of more than 32 percent for both major gas distribution companies.
Consumers supplied through Sui Southern Gas Company will face the largest increase. The RLNG price for SSGC has been fixed at $25.087 per million British thermal units.
The new price represents an increase of $6.4512 per MMBtu, or approximately 34.6 percent, compared with the previous month.
Sui Northern Gas Pipelines Limited consumers will pay $25.8388 per MMBtu. The price has increased by $6.316 per MMBtu, representing a rise of 32.35 percent.
The revised prices are effective from July 1, according to the regulatory notification.
The sharp increase is expected to raise energy costs for industries and power plants that depend on imported gas.
RLNG is commonly used by electricity producers, fertiliser plants, textile mills and other industrial sectors. Higher prices could increase production costs and create further pressure on electricity tariffs.
Pakistan Forced to Buy Five Expensive Spot Cargoes
The increase followed a major decline in Pakistan’s normal LNG supply during July.
Only five LNG cargoes arrived during the month. This was reportedly the third-lowest monthly import volume since Pakistan began importing LNG.
All five cargoes were purchased by the state-owned Pakistan LNG Limited from the international spot market.
Pakistan State Oil did not import any cargoes under its long-term agreements with Qatar during July.
PSO normally purchases Qatari LNG through two long-term contracts linked to crude oil prices. These arrangements have generally provided greater price stability than emergency spot-market purchases.
However, the continuing disruption to Qatar’s LNG production and exports has prevented Pakistan from receiving its usual supply.
Pakistan LNG Limited was therefore required to secure replacement cargoes through international bidding.
One cargo scheduled for delivery on July 27 and 28 was purchased from TotalEnergies Gas and Power at $21.88 per MMBtu.
Other July cargoes were reportedly secured at prices ranging from $16.7372 to $20.6999 per MMBtu.
BP Singapore supplied cargoes priced at $16.7372 and $18.2345 per MMBtu. TotalEnergies provided another cargo at $17.37 per MMBtu, while PetroChina supplied one at $20.6999 per MMBtu.
Spot-market LNG prices can change rapidly because they are influenced by immediate global demand, available supply, shipping costs and geopolitical risks.
Pakistan’s reliance on spot purchases has exposed consumers to international market volatility.
Qatar Disruption Threatens Pakistan’s Energy Security
Qatari LNG supplies were disrupted after the Middle East conflict intensified in late February.
Damage to Qatar’s energy infrastructure and restrictions around the Strait of Hormuz affected LNG production and shipping.
Qatar is one of the world’s largest LNG exporters. More than 80 percent of its LNG shipments normally go to Asian markets.
Pakistan receives most of its imported LNG from Qatar, making the country particularly vulnerable to any prolonged disruption.
Asian countries turned towards the spot market after Qatar halted production, causing regional LNG prices to rise sharply.
Benchmark Asian prices climbed by almost 40 percent immediately after the disruption. Prices later remained well above levels considered affordable for emerging economies.
Regional LNG prices have increased by more than 140 percent since the conflict began on February 28.
The supply crisis has also affected industrial activity across South Asia. Energy-intensive sectors have reduced consumption because of high costs and limited availability.
Pakistan has attempted to increase domestic gas production and reduce dependence on imported LNG. However, local gas reserves remain insufficient to meet national demand.
The government currently has limited access to cheaper replacement supplies.
Major LNG exporters are already operating near full capacity, while much of their output is committed under long-term agreements.
Pakistan may therefore continue purchasing expensive spot cargoes unless Qatari production and shipping operations return to normal.
A prolonged disruption could increase electricity generation costs, reduce industrial competitiveness and place additional pressure on Pakistan’s foreign exchange reserves.
The crisis has also highlighted the risks associated with relying heavily on one country for imported energy.
Energy experts have repeatedly called for Pakistan to diversify LNG suppliers, expand domestic production and increase investment in renewable energy.
For now, businesses and energy consumers are likely to bear the impact of higher imported gas prices.
