Pakistan: Domestic, industrial consumers to face gas shortage in winter

INTERNATIONAL DESK : Amid the severe energy crisis in Pakistan, domestic and industrial consumers will suffer shortages during the winter season as Imran Khan-led government decided to continue gas supply to the power and fertiliser sectors, local media reported.

According to Geo TV, the decision was made by the Cabinet Committee on Energy (CCoE) during a meeting on Thursday which was chaired by Federal Minister for Planning and Development Asad Umar.

The CCOE decided supply of gas to “dedicated” consumers, including power and fertiliser plants, would remain stable, The News International reported.

The total availability of gas from domestic resources stands at 3,300 mmcfd, while with the import of RLNG, there is another 1,000 mmcfd gas coming into the system, the publication reported, citing official sources.

There is a maximum gas supply available in the range of 4,300 mmcfd against the average demand of 6,500 to 7,000 mmcfd. In the severe winter season, this demand goes up to 8,000 mmcfd.

Pakistan is on the verge of a massive shortage of gas and rationing due to depleting local gas reserves and the failure of the Imran Khan government to procure a sufficient quantity of LNG.

On November 1, energy minister Hammad Azhar had informed that the government has arranged 11 LNG cargoes for the month of November, The News International reported.

LNG trading companies have backed out of an agreement made with PLL to provide two cargoes for November for mammoth monetary gains of up to 200 per cent profit in the international spot market, according to the publication.

Pakistan’s cost of energy production has increased following an increase in fuel prices.

Almost two-thirds of the country’s electricity generation is based on fossil fuels, as per The Tribune.

The rise in crude oil prices have hit the highest in the last three years – USD 86 per barrel, the newspaper reported.

The energy crisis is worsening due to the rising cost of the LNG. (ANI)