LNG cargoes’ delay attributed to higher prices

LAHORE: Liquified natural gas (LNG) cargoes were delayed due to higher prices in the international market, the energy minister said on Saturday as the government suspended gas supply to general industries and CNG stations in Punjab and Khyber Pakhtunkhwa on fuel shortage.

Energy Minister Hammad Azhar did not comment on the government not utilising LNG terminals optimally.

Sui Northern Gas Pipelines Limited (SNGPL) stopped gas supply to general industries and compressed natural gas (CNG) sector from July 17 for indefinite period, said

Ghiyas Paracha, Central leader of All Pakistan CNG Association.

An official said in line

with the directions of the ministry and to manage gas

loads, it has been decided to suspend gas supply to all Liquified natural gas filling stations and general industries till improvement of the situation.

SNGPL under its load management plan for the period of June 29 to July 5 suspended gas/regasified liquefied natural gas supply to compressed natural gas sector, cement industry and non-export industrial sector across the franchised area of gas utility. RLNG supply to both Punjab-based fertiliser units would be stopped from midnight of June 29, 2021 till midnight of July 5.

Sources said two LNG cargoes were ordered late. Gas shortage is being faced in the middle of lean summer months, they said.

Paracha said SNGPL is closing all CNG and General industries with immediate effect in all Punjab & KPK province due to shortage of regasified liquefied natural gas.

“It is not acceptable and fair to us. Petroleum division is under pressure from power division for diverting gas for power generation,” he said. “We are right in the middle of peak summer months and the current temperature is 37 degrees.”

The government does not arrange gas itself and also does not allow private people to bring LNG. A private company has been begging governments for ten years to bring in gas for CNG, while it has also obtained licences and necessary permits.

Energy crisis wreaked havoc on the economy as gas and power blackouts brought business, commercial, and manufacturing activities to a standstill about two weeks back.

The messed-up energy crisis means no gas for productive sectors of the economy like, industry and transport.

Earlier, both Sui companies have squeezed gas supply in view of shrinking imports of LNG.

Consumers of Sui Southern Gas Company had to face hardship for longer periods as the situation aggravated further as far as availability of natural gas is concerned.

Power sector also felt the heat of fuel shortage, facing serious issues on generation sides.

According to sources, power generation was said to be curtailed by 5000MW to 7000MW during the peak of the crisis.