The Oil and Gas Regulatory Authority (OGRA) has cut regasified liquefied natural gas (LNG) prices by about 20% month-on-month for September, reflecting the arrival of two relatively lower-cost LNG cargoes under the country’s long-term agreement with Qatar.
The reduction comes as Pakistan continues to face severe gas shortages and load-shedding in several parts of the country. OGRA’s notification puts the September RLNG transmission and distribution prices for the two Sui gas companies between $12.6112 and $15.1963 per million British thermal units.
For Sui Northern Gas Pipelines Ltd., the transmission price was set at $13.9927 per MMBtu, down $3.4952, or 19.99%, from August. The distribution price was fixed at $15.1963 per MMBtu, a decline of $3.8313, or 20.14%. For Sui Southern Gas Co., the transmission price fell to $12.6112 per MMBtu from August, a reduction of $3.4612, or 21.14%. Its distribution price dropped to $14.2233 per MMBtu, down $3.9112, or 21.57%.
The new prices are based on two LNG cargoes imported by state-owned Pakistan State Oil, with the cargoes supplied under Pakistan’s Qatar agreement at a price linked to 13.37% of Brent crude.
The September reduction follows an exceptional disruption in Pakistan’s LNG supply chain after Qatar’s shipments were interrupted amid the regional conflict. Pakistan was forced to rely more heavily on expensive spot cargoes to cover shortages.
Pakistan received only two cargoes from Qatar in September, compared with about eight Qatar-origin cargoes during the comparable period in 2025. From March through September 2026, Pakistan received 11 LNG cargoes under the Qatar arrangement, while seven additional cargoes were procured from the international spot market. During the same period of March to September 2025, the government imported 64 cargoes from Qatar.
The supply disruption has had a direct impact on the power and gas sectors, with shortages contributing to prolonged load-shedding. Pakistan LNG Ltd. recently rejected an emergency spot LNG offer of $26.969 per MMBtu because of its high cost.
Sharp contrast
The latest RLNG price reduction highlights the substantial difference between Pakistan’s long-term Qatar supplies and emergency spot procurement. An industry analysis published earlier this month said Pakistan had secured 15 cargoes between March and August, including seven spot cargoes priced between USD16 and USD22 per MMBtu and eight Qatar cargoes priced between USD7 and USD14 per MMBtu.
OGRA’s September notification also shows that the cost of LNG rises materially between the delivered cargo price and the final RLNG price because of transportation, system losses and other supply-chain charge.
Analysts said the September reduction should provide some relief to gas buyers and power generators, but the benefit will depend on the restoration of regular LNG supplies. “Lower-priced Qatar cargoes will bring down the RLNG cost compared with the expensive spot cargoes Pakistan had to consider during the supply disruption,” said an energy-sector analyst. “However, the reduction in the notified price does not by itself resolve the supply-side problem. If contracted Qatar volumes remain disrupted, Pakistan will continue to face pressure on power generation and gas availability.”
Pakistan’s LNG market remains exposed to geopolitical and shipping risks because Qatar is a major source of its contracted LNG. Reuters reported this week that disruptions around the Strait of Hormuz have forced LNG buyers to seek greater supply diversity, while Qatar’s LNG production and export operations have also been affected.