Islamabad: Pakistan’s Petroleum Minister, Musadik Malik, has assured the National Assembly that there is no shortage of Liquefied Natural Gas (LNG) in the country. Responding to a notice regarding reduced gas production and the expensive purchase of LNG, he clarified that the country currently has a surplus of LNG.
Minister Malik explained that LNG is being purchased through long-term contracts, but due to high prices, it is not being sold. “We had initially planned for 600 MMcfd of gas to be used by power plants, but due to the lack of a uniform gas price, no buyers are interested in the gas priced at Rs. 3,600,” he said, adding that even power plants are not purchasing this gas.
He also revealed that the government had requested Qatar to defer five LNG cargoes purchased this year to the following year and was negotiating with another company for the deferment of five additional cargoes. Despite Qatar’s refusal, the government issued a tender for an additional cargo in January, citing the need to secure supply.
Minister Malik further addressed concerns related to captive power plants in Karachi, stating that only 18 out of 2,500 industrial plants had captive power, which was producing electricity at Rs. 13 per unit, while the rest were buying electricity at Rs. 60 per unit from K-Electric, causing a competitive disadvantage.
Referring to negotiations with the IMF, Malik noted that the caretaker government was bound by the terms agreed with the IMF to shut down captive power plants, but the government has requested the IMF to reconsider this decision, emphasizing that it is not in the country’s best interest.
On the issue of gas pricing, he stated that until a uniform price for all types of gas is established, the current problems will persist, leading to a loss of Rs. 2,500 per million cubic feet of gas and further increasing circular debt. He emphasized that a uniform price would allow both industries and domestic consumers to benefit equally.
In response to a question by Shazia Marri regarding constitutional matters, Minister Malik reaffirmed his commitment to upholding Article 158 of the Constitution, ensuring that all actions taken are in compliance with constitutional procedures. He assured that domestic consumers are currently receiving affordable gas.
