Ministry of Petroleum Initiates Comprehensive Winter Gas Plan Amid Threats of Shifting Maritime Routes and Supply Shortages Stemming From Middle East Conflict
ISLAMABAD: Authorities have raised the possibility of a gas shortage coming in the winter, given the rising geopolitical tensions and the possibility of shipping routes being closed in the Middle East.The continuous supply of Liquefied Natural Gas (LNG) from Qatar is now uncertain and the Ministry of Petroleum has officially started planning for a comprehensive Winter Gas Plan (WGP) due to the high demand for gas during the winter months for domestic and industrial purposes.
Total Gas Plan: Sources in the petroleum ministry said that 21 LNG cargoes will be required to meet energy requirements during the winter.Import Challenges: Pakistan will need 21 LNG cargoes to meet energy demand during the winter, according to sources in the petroleum ministry.
Financial burden of Spot Cargoes: In the event of any further delay in the supply of spot cargoes, the government is mulling emergency spot cargo procurement. Spot purchases are estimated at $30/MMBTU (million British thermal units), however, — that is, about $17/MMBTU more expensive — than long-term contractual supplies from Qatar, which range from $13/MMBTU to $16/MMBTU.
Federal Approval Process: The Ministry of Petroleum will submit the winter gas plan for formal approval and authorisation to the federal government. Implementation will begin as soon as federal cabinet approval is given.
Pakistan imports about 40% of its winter gas requirement, which is referred to as the impact on consumers. In absence of restoring stable Qatari shipments, a corresponding dependence on costly spot cargoes will become unavoidable, which will put an extra financial strain on consumers and the national exchequer, officials note.