Another major gas crisis is expected to hit the country this winter as Pakistan LNG Limited (PLL) was unable to attract LNG trading companies to its tender floated on September 11, 2021, where eight LNG cargoes were sought – four each for December and January, reports Geo.
According to a report in The News, this means the country will not be able to import 1.2 bcfd LNG each during the peak demand season in December and January.
Instead, the country will be able to import just 900mmcfd each month with a deficit of 300 mmcfd. In November, the government will import 1bcfd against a capacity of 1.2 bcfd, the publication reported.
Because of no response from LNG trading companies, PLL’s 600 mmcfd capacity at the PGPCL terminal will remain underutilized by 300 mmcfd in both in December and January. “This would be double jeopardy for the government, creating major political backlash from the masses who are sick of high inflation for a very long time,” a senior official from the energy ministry told the publication.
“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, demand goes up to five bfcd, whereas the country will only have 3.7 bcfd in December and January for failure in purchasing eight LNG cargoes,” the official was quoted as saying.