The particular gas shortage in the upcoming winter season has become certain as Pakistan LNG Limited (PLL) has failed to appeal the LNG trading companies in response to its gentle floated on September 11, 2021 looking for eight LNG cargoes, four each for December and January.
This implies that the country will not be able to get 1.2 bcfd LNG each in December and January, top demand season in winter, rather it will be able to import just 900mmcfd in each month with a shortage of 300 mmcfd. In November, the government will import 1bcfd contrary to 1.2 bcfd capacity.
As a result of no response from LNG trading companies, in December and January, PLL’s 600 mmcfd volume at PGPCL terminal will remain underutilized by 300 mmcfd each month. “This would be a double jeopardy for the government creating a mammoth political backlash from the masses sick of high inflation for a very long time,” a senior official at the Energy Ministry privy to the development stated
“The production of local gas has fallen to 2.8 bcfd and the country can import 1.2 bcfd LNG which will not be fully exploited in the coming winter. In the winters the demand goes up to 5 bfcd whereas the country will only have 3.7 bcfd in December and January for failure in purchasing eight LNG cargoes.’
“This means that in December and January, the country’s economic and industrial activities will virtually come to standstill,” the official mentioned.
