Islamabad: Officials have revealed in a meeting of the Senate Standing Committee on Petroleum that Pakistan may face serious difficulties in LNG supply next month.
While giving a briefing in a meeting chaired by Senator Manzoor Ahmed, officials said that the availability of LNG in the country may be limited after April 14, which is likely to increase pressure on the energy sector.
According to officials, under the agreements agreed to for the current year, two LNG cargoes were delayed every month, while LNG supply from Qatar has been completely stopped since March 2.
It was stated in the briefing that 8 cargoes were to reach Pakistan during March, but only two cargoes were received. Similarly, out of the 6 cargoes scheduled for April, the supply may also be uncertain.
According to energy officials, Sui Southern has reduced gas supply to a fertiliser plant by about 50 per cent due to limited gas availability.
The meeting was informed that the amount of gas supplied to the power sector has come down from 300 mmcfd to 130 mmcfd. Gas will be provided to domestic consumers on a priority basis, while it will be difficult to meet the entire requirements of the power sector in April.
Officials said that other sources are being considered to meet the energy requirements of the power sector, and the option of buying LNG from Azerbaijan is also under consideration.
However, purchasing LNG from the spot market may prove expensive, as its price can reach about $24 while the same gas is available for about $9 under the agreement with Qatar. This difference is likely to increase the cost of power generation.
