Pakistan's current gas supply is aggravated by a delay in Gunvor Liquefied Natural Gas (LNG) cargo supply in December than it was contracted.
The Singapore-based LNG trading company, Gunvor, delivered 30 per cent less LNG cargo in December than it was contracted to supply, creating acute gas shortages in the current month. But the crisis is likely to continue in the first month of the new year also as the same company has refused to provide the term cargo on January 10-11, according to News International.
Further, the current crisis comes at a time when the system gas production has already dwindled by 1 billion cubic feet from 4,200mmcfd to just 3,200mmcfd.
Meanwhile, the Pakistan government's failure in ensuring four spot LNG cargoes (two each in December and January) and 30 per cent default by Gunvor in December aggravated the situation, according to News International.
Furthermore, it's expected that 100 per cent default by the same company on January 10-11 2022 would worsen the gas crisis next month and it's believed that this is more of a ruse for profit-taking due to unprecedented volatility in the international market.
Earlier, the companies selling the term cargoes in the spot market is eyeing to reap windfall profits due to a 400 percent surge in LNG prices to USD 50 per MMBTU, and therefore not ready to commit to supplying on January 10-11 at the previously contracted rates.
Further, it is against this backdrop of increased profits that the company is even ready to pay the 30 percent cost of the term cargoes, for the damage incurred instead of providing replacement cargo for another month, as sought by the Pakistan LNG Limited, according to News International.
( With inputs from ANI )
Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor