An important meeting of the Senate Standing Committee on Petroleum was held under the chairmanship of Senator Manzoor Ahmed, in which officials apprised the alarming situation regarding the possible shortage of LNG in the country.
During the meeting, officials said that according to the current situation, the availability of LNG in Pakistan may be affected after April 14. Officials said that according to the schedule set for the current year, two LNG cargoes arriving every month have been postponed.
While briefing the committee, it was informed that the supply of LNG from Qatar has completely stopped since March 2. A total of 8 cargoes were to reach Pakistan in the month of March, but only 2 of them were received.
Similarly, 6 cargoes were scheduled to arrive in the month of April, but the current situation may affect the energy sector. According to officials, Sui Southern Gas Company has reduced the gas supplied to a fertilizer plant by 50%.
Officials further said that the quantity of gas supplied to the power sector has come down from 300 mmcfd to about 130 mmcfd. Gas will be provided to domestic consumers on priority basis, while it will not be possible to meet the full requirements of the power sector during April.
The briefing also said that the government is considering alternative sources to meet the needs of the power sector. In this regard, the possibility of purchasing LNG from an Azerbaijani company is also being considered.
According to officials, purchasing LNG from the spot market can cost up to about $24 per unit, while under the current agreement with Qatar, gas is available for about $9. This difference has also raised concerns that the cost of electricity generation will increase in the future.
