[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]The Senate Standing Committee on Petroleum, chaired by Senator Mohammad Abdul Qadir, convened at Parliament House, indicating the likelihood of a gas price increase from January 2024, as disclosed by officials from the Petroleum Division and the Oil and Gas Regulatory Authority (OGRA).
The surge in gas prices, officials noted, is inevitable due to various sector challenges, including winter LNG supply, cross-subsidy considerations, and providing cheaper gas to the fertilizer sector.
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Deliberating on the Urea shortfall, the committee discussed Pakistan’s daily gas consumption of 4,000 MMCFD against the production of 3,000 MMCFD. Fertilizer companies, particularly FFC and Engro, consumed almost 750 MMCFD, with 85 percent supplied by Marri Petroleum. Senator Abdul Qadir emphasized the need for details on fertilizer production against the subsidized gas.
Addressing the energy crisis, Senator Qadir suggested initiating work on newly discovered sites and criticized the $32 billion import bill. The government adjusted BTU prices for KP and Punjab industrial sectors, with Qadir advocating a formalized LNG import policy, including private parties, to meet local demands.
Concerning committee recommendations, officials reported adoption and committed to a detailed report. Gas load shedding in Abdullah Gabol Goth was also discussed, with officials attributing low pressure to system constraints. Approval for a pipeline and pressure regulation, costing Rs. 16.4 million, aims to resolve low-pressure issues in the area.
The committee’s discussions underscored the multifaceted challenges in the petroleum sector, encompassing pricing, supply considerations, and the need for strategic policies to address the energy crisis in Pakistan.[/vc_column_text][/vc_column][/vc_row]
