Minister for Energy Hammad Azhar on Friday informed the Senate that gas domestic reserves were fast depleting and the gas prices had not been increased since 2019.
Responding to a calling attention notice raised by Senators Sherry Rehman and Saleem Mandviwalla about the ongoing crisis in the gas supply to consumers, both domestic and commercial, especially for the upcoming winter, he said smooth gas supply would be ensured during breakfast, lunch, and dinner timings in winter season. He said around 70 percent gas demand was being met through domestic reserves while remaining 30 percent was fulfilled through import.
Liquefied Natural Gas (LNG) was very expensive as compared to the local gas, he added. The minister also clarified that the gas share of Sindh in total country production was only 38 percent, while Balochistan share stood at 40 percent, 12 percent Khyber-Pakhtunkhwa and 8-9 percent Punjab. He said the incumbent government signed LNG import contract at lowest rate (10.2 percent) as compared to the past Pakistan Muslim League-Nawaz (PML-N) government rate (13.4 percent). He categorically refuted the news item that gas would be available for only three days in a week.
Regarding Pakistan-Iran Gas Pipeline Project, he informed that the project was delayed due to international sanctions on Iran. Negotiation was being underway with Russia on North-South Pipeline Project, he added. He said two LNG terminals were set up on take or pay basis during the PML-N government and Rs 40 million each daily rent was being paid to them by the government. The Minister said two more LNG terminals were being set up but they were purely based on business to business model and the government would not pay its rent.
One terminal was being set up by Japanese company Mitsubishi and the other was a local consortium with the assistance of Qatar, he said. Hammad Azhar said 80 percent LNG cargoes were being procured through long-term contracts while 20 percent LNG cargoes were arranged through open competitive bidding.
