News Desk
Islamabad: Pakistan has decided to purchase liquefied natural gas (LNG) from Azerbaijan next month, after previously postponing LNG purchases from Qatar.
To manage the depletion of existing gas reserves, the government has also instructed local gas-producing companies to reduce production.
Sources within the Petroleum Division confirmed that Pakistan LNG Limited (the body responsible for gas procurement) has called an emergency meeting today to review the overall gas demand and supply situation. The board will reconvene on Monday to approve Azerbaijan’s offer.
This move has raised concerns in government circles, as the government is asking local producers to reduce supply while delaying the import of cheaper LNG from Qatar until 2026 due to an oversupply of gas in the system.
Currently, the country is experiencing a gas surplus due to reduced electricity demand, which has led the government to postpone LNG imports from Qatar and scale back domestic production. A member of the board of Pakistan LNG Limited (PLL) expressed concerns over importing expensive LNG while reducing domestic production and called for clarification.
Sources also revealed that Pakistan will purchase LNG from Azerbaijan’s state-owned oil company, with bidding scheduled for this coming Monday. Notably, Sui Northern Gas Pipelines Limited (SNGPL) has requested to import at least one cargo in January.
Pakistan generates about one-third of its electricity from gas, but due to a shift toward cheaper electricity sources like solar panels, electricity demand has decreased by 8%. If the imported gas is supplied to domestic consumers, it could lead to higher tariffs for consumers. This is why SNGPL opposed the IMF’s condition to cut off gas supply to captive power plants.
