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In the upcoming winter season, gas consumers in Pakistan are expected to endure 16 hours of daily gas load shedding as a result of diminishing gas reserves. The Caretaker Federal Minister for Energy, Muhammad Ali, stated in a press conference that the government will only provide domestic consumers with 8 hours of gas supply each day. The government’s inability to offer uninterrupted gas service during winter is attributed to the declining gas reserves.
The minister emphasized that domestic consumers will need to switch from natural gas to LPG gas to meet their energy needs. He highlighted that the country’s gas reserves are depleting by 5 to 7 percent annually, leading to the government’s decision to impose a complete ban on new gas connections due to gas scarcity.
Read more : Gas Prices Could Surge Massively In Coming Weeks
In response to questions, Ali disclosed that the government has procured two shipments for December 2023 from the spot market and plans to purchase two more spot cargoes for January 2024.
Furthermore, the minister informed the media that the government has raised gas prices as a measure to address the growing circular debt in the gas sector, which has reached Rs. 2,100 billion. He noted that with the new gas tariff, the government will halt the increase in circular debt in the gas sector.
To meet local demand, the government is actively promoting exploration activities in the country, considering that the gas sector faces an annual loss of Rs. 400 billion. Ali elaborated on this by stating that Sui gas companies incur an annual loss of Rs. 190 billion, while the government experiences a loss of Rs. 210 billion in LNG due to cost disparities.
Additionally, Ali revealed that a Pakistani oil refinery has entered into an agreement with Russia to import 9 million barrels annually, which is expected to save Pakistan up to $15 per barrel.
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