ISLAMABAD: Pakistan is grappling with an oversupply of LNG due to a significant drop in demand, primarily from the power sector. This situation has created operational and financial challenges for Pakistan State Oil (PSO), which imports LNG under a long-term agreement with Qatar.
The Managing Director of PSO informed the National Assembly’s Standing Committee on Energy (Power Division) that power sector consumption, previously at two LNG cargoes per month, has drastically declined. Initially, the power sector consumed 600 million cubic feet of LNG, but now demand has sharply reduced, affecting PSO’s supply chain.
Committee members, including MNA Syed Naveed Qamar, stressed the urgency of addressing this imbalance, as it poses a threat to PSO’s financial sustainability. Discussions also extended to the country’s fuel standards, with committee members urging local refineries to upgrade to Euro-5 compliance and reduce harmful additives in fuel, which are contributing to public health issues.
Officials emphasized the strategic importance of maintaining national refining capacity, though they acknowledged the need for deregulation and competitive market practices. Concerns were also raised over the absence of key officials from major exploration companies, highlighting a lack of communication with the committee.
Story by Israr Khan
