The Pakistani government is weighing a decision to import $2 billion worth of gas to satisfy rising winter demand. Winter requirements are expected to climb from 850 million cubic feet per day to 1,600 million cubic feet per day.
The Petroleum Division advised beginning the import process during the first week of October. Petroleum Minister Ali Pervaiz stated the matter is pending a decision with the CCOE.
The Cabinet Committee on Energy has not yet reviewed the gas load management summary. Officials sought authorization to import 22 cargoes of liquefied natural gas (LNG).
A proposal requested the import of 12 of those 22 cargoes between October 7 and October 10. Prime Minister Shehbaz Sharif led meetings to determine the specific quantity of cargoes.
The average cost for an LNG import is $87 million per cargo. The Petroleum Division initially estimated the import cost at $1.5 billion.
Doha extended the force majeure on a long-term deal for at least 11 cargoes until November. There was a view that only 15 cargoes should be imported.
Pakistan LNG Limited was asked to arrange four cargoes from Azerbaijan by October 10. Pakistan State Oil was tasked with importing four cargoes by October 7.
The plan required Pakistan LNG Limited to explore three cargoes from a United States government-nominated firm by October 7. SNGPL demand is projected to grow from 550 mmcfd to 1,100 mmcfd.
The government may disconnect gas supplies to the industry, power, fertiliser, compressed natural gas (CNG) and cement sectors to prioritize residential consumers. Gross official foreign exchange reserves remained at a little over $21 billion.
Pakistan received $5.4 billion in external loans during the July-September period.
