ISLAMABAD: Prime Minister Shehbaz Sharif directed authorities Tuesday to prepare a comprehensive gas load management plan and take all necessary measures to ensure uninterrupted gas imports during the winter season, citing the current regional situation.
Sharif issued the instructions while chairing a meeting on winter gas load management in Islamabad, according to a statement from the Prime Minister's Office. He called for an extensive public awareness campaign on the implementation of the plan and for advance preparations to secure gas supplies.
Participants were informed that domestic consumers would be given priority for locally produced gas, while regasified liquefied natural gas, or RLNG, would be prioritized for power generation and industry. A public awareness campaign would also promote alternative energy sources at the household level to replace locally supplied gas.
The Prime Minister's Office said measures were being taken to ensure uninterrupted transmission of gas from reserves in the country's northern regions, and that a proposal to introduce bank financing facilities for electric water and space heating appliances was under consideration.
The meeting was attended by National Food Security Minister Rana Tanveer Hussain, Economic Affairs Minister Ahad Khan Cheema, Finance Minister Muhammad Aurangzeb, Petroleum Minister Ali Pervaiz Malik, Adviser to the Prime Minister on Industry Haroon Akhtar, Minister of State for Finance and Railways Bilal Azhar Kayani and other senior government officials.
The meeting took place as authorities struggle to finalize the LNG import plan for the upcoming three winter months — December to February — amid a challenging supply situation stemming from the U.S.-Iran conflict.
Renewed hostilities in the Middle East have disrupted major oil and gas supply routes, including the Strait of Hormuz and Bab al-Mandab, and caused fuel prices to rise.
Against this backdrop, gas companies and the Petroleum Division had sought at least 22 import cargoes for the three-month period, but the task force on energy, led by Lt. Gen. Zafar Iqbal, has promised no more than 10 to 12 cargoes of around 100 million cubic feet each on a best-effort basis, using all diplomatic and logistical channels.
The plan will be presented to the prime minister for approval, given the involvement of around $100 million per spot cargo and the requirement for consent from the Ministry of Finance and the State Bank of Pakistan.
The matter has assumed greater importance because the LNG import plan will affect current account targets agreed upon by the Ministry of Finance and the International Monetary Fund, whose staff mission is currently in Pakistan and holding talks that could pave the way for the disbursement of about $1.2 billion under two concurrent programs.
Sources indicated that actual LNG imports may not exceed seven to eight cargoes over the three winter months given prevailing market conditions, which would bring the outcome closer to the Ministry of Finance's desired level.
In a related development, the Oil and Gas Regulatory Authority has notified an 8% increase in liquefied petroleum gas, raising the cost of the 11.8-kilogram domestic cylinder by 244.14 rupees for October.
