CNG stations in Punjab and KP will stop operating from November 2022 to March 2023 as the gas crisis increases as a result of the lack of required LNG during the winter.

While the government is obligated to purchase 12 LNG cargoes each month, Pakistan LNG Limited (PLL) has been unable to do so; as a result, the country will only have 10 LNG cargoes available in December and nine LNG cargoes each month in the following months. Due to the decreased LNG import cargoes, gas utilities will be forced to limit the supply of gas to captive power plants by 50 per cent.

According to Express, in Punjab and KP, there won’t be any LNG available for CNG stations during the winter. Due to insufficient local gas output, Punjab has also been experiencing a gas crisis.

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According to government officials, the Sui Northern Gas Pipelines Limited (SNGPL) system’s gas supply to the fertiliser sectors won’t be reduced. Due to the probable political reaction this would cause, the government does not intend to reduce supplies of gas for the household sectors, therefore there will always be a supply available.

As instructed by the federal government, SNGPL has been providing Re-Gasified Liquefied Natural Gas (RLNG) to a number of subsidised industries, including domestic consumers, export-oriented businesses, and fertiliser producers.

Government payments to SNGPL for RLNG subsidies are Rs199 billion as of this writing. SNGPL’s capacity to pay RLNG suppliers PSO and PLL has been severely hampered by the reduced pricing. The amounts owed to PSO and PLL are now Rs284 billion and Rs135 billion, respectively.

The power industry pays in full, but because its receivables have grown to over Rs115 billion, payments to suppliers have been significantly delayed.