Pakistan likely to suffer another gas crisis in Sept-Oct

Islamabad [Pakistan] July 11 (ANI): Pakistan is most likely to hit by another brewing liquefied natural gas (LNG) crisis again in September and October, as the government has refused to purchase eight spot LNG cargoes, reported The News International.

The government refused to procure the LNG as the gas was offered at a higher cost in the range of USD 13.787-USD 16.0 per MMBTU (per million British thermal units), according to the publication.

The Pakistan LNG Limited (PLL) — 100 per cent state-owned company, had floated the tender for eight LNG spot cargoes (4 for September and 4 for October) but because of the higher than expected rates, the government cancelled them by rejecting to buy LNG at high prices.

With this, the top sources in the Petroleum Division warned that the country could suffer from another gas crisis due to a shortage in the aftermath of the rejection of higher bids for spot cargoes.

Earlier this week, a gas-cum-electricity crisis had hit the country because of dry docking of FSRU at Engro LNG Terminal, Annual Turn Around of a gas field in Sindh province and low hydel generation from Tarbela Dam.

According to Petroleum Division officials, the global LNG market right now is too bullish driving the LNG prices to the higher side. However, the official said the government would continue to monitor the market trends and if the prices start tumbling the PLL will retender LNG cargoes for September and October, reported The News International.

In case there is no respite in LNG prices in the international market, the official said then the government would be left with no option but to procure more furnace oil and diesel to run power plants to generate the costly electricity to scale down the power crisis likely to emerge in September and October. (ANI)