Despite all the hue and cry around gas shortages, Pakistan has not been able to develop any new liquefied natural gas (LNG) terminals since 2017, while smooth commercial import of the scarce commodity still remains a far cry.
Energy is a very tricky subject as far as Pakistan is concerned, where the industrialists, compressed natural gas (CNG) sector and domestic consumers keep complaining about the dearth of the natural resources, while the government’s mouthpieces keep propagating, “all is well”.
At present, Pakistan faces a gas supply gap of 1,300mmfcd. This could have been significantly reduced if the government had allowed the two existing terminals to increase their import capacity by 600mmfcd, something that could be done in a few weeks and sell directly to industrial consumers without incurring any liability on the national exchequer.
The country would receive one less LNG consignment this January from Qatar under the long-term contract signed in 2017, which would further aggravate the gas shortage.
“We anticipate the LNG consignment from Qatar, scheduled for January 10, would not come. But this would not be a problem, since the situation is not that worse as projected in the media,” said Muzammil Aslam, spokesman for the Ministry of Energy, while talking to BOL News.
Qatar had been defaulting one LNG consignment every month for some time, he added.
The country has stayed the spot purchases since the last tender was issued on November 2, 2021.
Energy Minister Hammad Azhar at a press briefing in late December said: “The country faces gas shortages every winter because Pakistan’s natural gas fields are seeing a depletion of around 9 per cent each year and imported LNG is very expensive.”
The country would receive one less LNG consignment this January from Qatar under the long-term contract signed in 2017, which would further aggravate the gas shortage.
“We anticipate the LNG consignment from Qatar, scheduled for January 10, would not come. But this would not be a problem, since the situation is not that worse as projected in the media,” said Muzammil Aslam, spokesman for the Ministry of Energy, while talking to BOL News.
Qatar had been defaulting one LNG consignment every month for some time, he added.
The country has stayed the spot purchases since the last tender was issued on November 2, 2021.
Energy Minister Hammad Azhar at a press briefing in late December said: “The country faces gas shortages every winter because Pakistan’s natural gas fields are seeing a depletion of around 9 per cent each year and imported LNG is very expensive.”
Albeit, the rising global demand and record high commodity prices, mismanagement remains the main reason for gas shortages, which has a systemic impact on the economic growth, as well as standard of living of the people.
Despite the plan and claims, the LNG sector has not been deregulated. Business groups aspiring to set up LNG import terminals and the parties willing to import the gas have not yet succeeded in their endeavours.
However, Muzammil Aslam negates all these impressions, saying the demand was low because winter was not that cold.
“The industries were offered to have themselves audited for their energy consumption, and after that the supply to their units could be restored. But, they are not agreeing for the audits, which hints at somethi
