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Fuel stocks remain stable: Govt
Aftab Maken
ISLAMABAD: Pakistan may face severe LNG shortages in the coming weeks, the Senate Standing Committee on Petroleum warned. Officials briefed the committee that supply could be disrupted after April 14, putting additional pressure on the power sector and industries. The Ministry of Petroleum before teh committee said that only 2 of the expected 8 LNG cargoes arrived in March, while April deliveries remain uncertain.
Last week, a high-level meeting chaired by Finance Minister Senator Muhammad Aurangzeb reviewed the country’s petroleum reserves, imports, and refinery operations. Officials said stocks of petrol, diesel, aviation fuel, and LPG are sufficient, and the supply chain is functioning normally. The finance minister instructed authorities to ensure uninterrupted delivery and to monitor global price movements closely.
Energy Minister Owais Ahmed Khan Leghari had noted last week that increased domestic electricity generation would limit the impact of potential LNG supply disruptions. He stated that currently nearly 74 percent of electricity in Pakistan is generated from local sources, with the government aiming to increase this above 96 percent by 2034 to reduce dependence on imported fuel.
The committee was informed that gas shortages have forced Sui Southern Gas Company to cut supply to a fertilizer plant by 50 percent and reduce gas allocations to power plants. Previously, power plants received about 300 million cubic feet per day (MMCFD), now reduced to approximately 130 MMCFD. Authorities said priority will be given to household consumers, and the power sector will not be able to meet full demand in April. Alternative fuels will be used for electricity generation, raising costs for consumers.
Experts warned that if LNG cargoes do not arrive on time, electricity production could also be affected, increasing the risk of load-shedding. The government is exploring LNG imports from Azerbaijan to address temporary shortages. Spot market purchases are possible but are costlier, with long-term contracts from Qatar providing LNG at around $9 per MMBTU versus up to $24 per MMBTU in the spot market.
The committee expressed concern over recurring seasonal gas crises, citing planning weaknesses. Members directed the Petroleum Ministry to present a full supply plan, import agreements, and alternative energy arrangements at the next meeting to prevent an LNG crisis.
The government is focusing on expanding local electricity generation and diversifying energy sources to reduce reliance on imported fuels and stabilize the energy sector over the coming decade.
