Pakistan should have brought gas cargoes but failed to do so, as the purchasing time was over, admitted Pakistan's Finance Minister.
Finance Minister Shaukat Tarin on Tuesday stated that the Pakistan government should have bought gas cargoes but could not, as purchasing time was over, reported the News International.
Tarin in an interview with a news channel stated that the Pakistan government had been witnessing a gas predicament and regardless of spiked prices, the government continued to purchase gas. He reiterated that the government was unaware of the hiked international prices and should have bought the gas cargoes earlier, reported the News International.
Generally, Pakistan's fuel imports catered to around USD 12 to USD 13 billion on yearly basis, but it reached USD 20 billion per year.
Amid the severe energy crisis in Pakistan, domestic and industrial consumers will suffer shortages during the winter season as Imran Khan-led government decided to continue gas supply to the power and fertiliser sectors, the Pakistani media reported.
The total availability of gas from domestic resources stands at 3,300 million cubic feet per day (mmcfd), while with the import of RLNG, there is another 1,000 mmcfd gas coming into the system, reported the News International, citing official sources.
There is a maximum gas supply available in the range of 4,300 mmcfd against the average demand of 6,500 to 7,000 mmcfd. In the severe winter season, this demand goes up to 8,000 mmcfd. Pakistan is on the verge of a massive shortage of gas and rationing due to depleting local gas reserves and the failure of the Imran Khan government to procure a sufficient quantity of LNG. On November 1, energy minister Hammad Azhar had informed us that the government has arranged 11 LNG cargoes for the month of November, The News International reported.
LNG trading companies have backed out of an agreement made with (Pakistan LNG Limited) PLL to provide two cargoes for November for mammoth monetary gains of up to 200 per cent profit in the international spot market, according to the publication.
Pakistan's cost of energy production has increased following an increase in fuel prices. Almost two-thirds of the country's electricity generation is based on fossil fuels, as per The Tribune.
The rise in crude oil prices have hit the highest in the last three years - USD 86 per barrel, the newspaper reported. The energy crisis is worsening due to the rising cost of the LNG.
( With inputs from ANI )
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