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Pakistan LNG imports to bridge winter gas supply gap

Pakistan LNG imports are planned for November to February, with Qatar supplies preferred and spot cargoes as a backup if they are delayed.

Zaviya Desk

· 3 min read

Zaviya

Pakistan has decided to import 18 liquefied natural gas (LNG) cargoes to meet gas demand during the winter season, sources said. The shipments are planned for November to February, and Pakistan LNG imports are meant to cover a gap that local gas output is not expected to fill on its own. The sources said preference will go to cheaper supplies from Qatar, with one-off spot purchases as a fallback.

Why the winter gap is expected

According to a briefing on the gas demand and supply situation, domestic gas availability is expected to stay at about 1.4 billion cubic feet per day during winter. Punjab alone could require up to one billion cubic feet per day in the same season, the sources said. That shortfall could leave locally produced gas insufficient even for household needs in the winter months.

The briefing was given to Prime Minister Shehbaz Sharif, the sources added. A billion cubic feet per day is a measure of how much gas moves through the system in a single day, which makes the expected gap easier to picture.

Qatar supplies and spot cargoes

LNG is natural gas cooled into liquid form so that it can be shipped by sea, and each shipload is called a cargo. The sources said Qatar is the preferred source because its supplies are expected to cost less, in line with the government's focus on securing gas at lower prices. If Qatari shipments do not begin in time for winter, spot cargoes would be bought instead. Spot cargoes are single purchases arranged at short notice rather than under a long-term contract.

The next step is arranging the Pakistan LNG imports before November, with Qatari supply as the first choice and spot buying as the backup if deliveries slip.

Lower LNG prices and the regulator's notice

Separately, the Oil and Gas Regulatory Authority (OGRA), the regulator for the sector, issued an official notification cutting LNG prices by as much as 21 percent. The overall reduction was up to $3.91 per million British thermal units (MMBTU), a unit used to price gas. For the Sui Northern system the price fell by $3.83 to $15.19 per MMBTU, while the Sui Southern rate was cut by $3.91 to $14.22.

Aasan alfaaz mein

Pakistan sardiyon mein gas ki kami se bachne ke liye November se February tak 18 LNG cargo mangwane ka faisla kar raha hai. Local gas ki supply sardiyon mein lagbhag 1.4 billion cubic feet per day rehne ki umeed hai, jo zaroorat se kam hai. Qatar ki sasti gas ko pehli tarjeeh di gayi hai, aur der hone par spot cargo khareeday jayenge. Aam logon ke liye iska matlab hai ke gas ki availability par nazar rakhni hogi, aur bills par asar abhi wazeh nahi hai.

Questions readers ask

FAQ

Yes. Sources said Pakistan has decided to buy 18 imported LNG cargoes for the November to February winter period, with a preference for supplies from Qatar.

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