LNG shortage expected after April 14 in Pakistan

Petroleum Secretary power sector may face gas shortfall

ISLAMABAD: (UrduPointPakistan is expected to face a shortage of liquefied natural gas (LNG) after April 14, which could prevent the power sector from meeting its gas requirements, the Secretary Petroleum warned during a Senate Standing Committee on Petroleum meeting held under the chairmanship of Senator Manzoor Ahmed on Monday.

During the briefing, the Secretary explained that tensions in the middle East have disrupted petroleum supplies, noting that Pakistan imports around 70 percent of its petroleum products from the region.

Under normal circumstances, oil shipments from Arab countries reach Pakistan within 4 to 5 days, but current disruptions have slowed shipping schedules.

The Secretary added that global prices have surged, with high-speed diesel rising from $88 to $187 per barrel and petrol climbing from $74 to $130 per barrel.

Despite the increase, he emphasized that the price hike was intended to prevent hoarding and ensure uninterrupted imports, not to benefit oil marketing companies.

During the session, Senator Hidayatullah inquired about pre-March 7 petroleum prices and the percentage increase.

Officials from OGRA confirmed that diesel prices have risen by almost 100 percent, while petrol prices increased by 70 percent.

The Secretary also outlined the country’s current petroleum reserves: 11 days of crude oil, 21 days of diesel, 27 days of petrol, 9 days of LPG, and 14 days of JP-1. He added that the government is also developing a relief package for motorcycle and rickshaw users to ease the burden of rising fuel costs.

The officials warned that after April 14, LNG supplies will be unavailable, meaning the power sector will need alternative sources to meet its gas requirements.

While LNG could potentially be purchased from Azerbaijan at $24 per spot purchase, Qatar offers gas at $9 per unit, highlighting the cost challenges of alternative sources.

The committee meeting reviewed petroleum product prices and availability across the country, with the Secretary emphasizing the need to maintain supplies despite global price volatility.