Thursday, December 8, 2022

Pakistan Seeks Qatar Gas amid Energy Crunch, Costly Fuel Imports

Immigration News

Arif Ahmadi
Arif Ahmadihttps://www.khaama.com/
Arif Ahmadi holds a B.A. degree in Journalism. He works as an Editor & Content Writer for Khaama Press.

ISLAMABAD, Pakistan – Pakistan is seeking more gas imports on deferred payments from Qatar, according to sources, amid severe energy crunch and unprecedentedly expensive fuel imports.

Last month, Pakistan received a $2.3 billion Chinese consortium loan that will help stabilize its fast-depleting foreign reserves, as country continue to look towards the International Monetary Fund (IMF) to restore a $6 billion package agreed upon in 2019.

Authorities in Islamabad are engaging with Qatar at different levels to ramp up Liquefied Natural Gas (LNG) supplies to Pakistan to make up for shortage of four to five cargoes (about 400-500 million cubic feet of gas per day) every month, as DWAN reported.

The government has failed in last three attempts over the past couple of weeks to secure even a single cargo for July from the spot market as whatever quantities are available.

According to sources, Minister of State for Petroleum Musadik Malik visited Qatar a few weeks ago for additional LNG quantities, saying the government was tapping all avenues to see how additional molecules are secured to meet needs of the local industry and the people at competitive costs.

He said various pricing models were in his mind, but the real challenge was the availability of additional energy quantities, adding the government would encourage private investment for competition and end monopolies, the DWAN wrote.

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Although, both have already received the go-ahead from cabinet and its other forums to utilize the pipeline capacities, Sui gas companies have still not executed contracts despite strict reminders from the energy ministry and the regulator, Ogra.

Meanwhile, Qatari government has yet again asked Islamabad that it wants to invest in Pakistan to allow its infrastructure to remain feasible with backup supplies. Without such infrastructure, long-term contracts may be at risk as seen in Europe in recent months where because of low storage, LNG cargoes were either stranded or sold to other markets at significant discounts to buyers.

Doha may not commit additional long-term contracts for the consideration that the value chain in Pakistan was unable to accommodate more than 10 long-term cargoes per month on the two terminals, the DWAN reported.

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