LAHORE: Pakistan is set for severe gas load shedding in the upcoming winter as the gas shortfall is likely to reach its highest level this year, a local TV channel reported quoting sources within the Sui Northern Gas Pipelines Limited (SNGPL).
As per details, the gas supply is 17 million cubic while the demand is over 25 million cubic which might increase next month.
“The domestic consumers will receive the gas supply three times a day,” Geo News reported citing sources, adding that the commercial and industrial sectors will also suffer. The power, fertilizers and CNG sector will also get less gas.
The sources also said that fewer orders were placed since imported liquefied natural gas (LNG) is highly expensive.
According to the authorities, the government has been made aware of the gas scarcity. They added that they couldn’t sell RLNG (regulated liquefied natural gas) for less while paying more to purchase it.
Pakistan needs 4.1 billion cubic feet per day (bcfd) of gas, with winter demand peaking to around 4.5 bcfd against local production of 3.22 bcfd. The shortfall is bridged through LNG imports.
Pakistan began importing LNG seven years ago. However, the price of the commodity on the international spot, or short-term, market has risen from lows of $2 per million British thermal units (mmBtu) in 2020 to highs of $57 in August this year after demand in Europe surged, pushing Islamabad out of the market.
At present, the country relies on imported LNG cargoes through long-term contracts with Qatar and Italian multinational ENI. The agreements allow the country to import about eight cargoes per month, four short of the required 12 to meet the shortfall.
