Pakistan could face a shortage of Liquefied Natural Gas (LNG) after April 14 as imports from Qatar remain suspended amid tensions in the Middle East, officials told the Senate Standing Committee on Petroleum on Monday.

 

The committee, chaired by Senator Manzoor Ahmed, was informed that LNG shipments from Qatar had been halted since March 2, raising concerns about gas availability for the power sector in the coming weeks.

 

Officials told the panel that Pakistan has two LNG supply agreements with Qatar but deliveries have been disrupted due to the regional situation. Of the eight LNG cargoes scheduled to arrive in March, only two reached Pakistan, while six cargoes expected in April are unlikely to arrive.

 

“LNG supply from Qatar had been completely stopped since March 2,” officials told the committee. They added that LNG would not be available in the country after April 14 and that gas demand from the power sector would not be fully met in April.

 

The committee was informed that supply reductions had already begun in parts of the gas network. Officials said Sui Southern Gas Company had reduced gas supply to one fertiliser plant by 50 per cent, while supply to the power sector had dropped from 300 million cubic feet per day (mmcfd) to 130 mmcfd.

 

Officials told lawmakers that domestic consumers would continue to receive gas supplies despite the shortage. They said alternative arrangements were being considered to bridge the gap, including possible LNG purchases from Azerbaijan’s state oil company Socar.

 

However, officials said spot purchases could be significantly higher than existing contracts. “Spot purchases could cost around $24 per unit compared with $9 under the Qatari contract,” they said, adding that this would raise electricity generation costs.

 

During the briefing, Petroleum Secretary Hamed Yaqoob Sheikh told the committee that the Middle East situation had also affected petroleum shipments, noting that around 70 per cent of Pakistan’s petrol imports come from the region.

 

He said shipping movement had been disrupted and two Pakistani ships were also stuck in the Strait of Hormuz.

 

The secretary told the committee that global fuel prices had increased during the crisis. According to officials, the price of high-speed diesel rose from $88 per barrel to $187, while petrol increased from $74 per barrel to $130.

 

Officials also briefed the committee on the country’s fuel reserves. They said Pakistan currently has petrol reserves for 27 days, diesel reserves for 21 days, crude oil reserves for 11 days, liquefied petroleum gas stocks for nine days and jet fuel reserves for 14 days.

 

Separately, the petroleum secretary said the government was preparing a relief package for motorcycle and rickshaw users to offset the impact of rising fuel prices.

 

“The government is working on a package to provide relief to owners of motorcycles and rickshaws,” Sheikh told the committee.

 

Officials added that the government had allowed imports of oil below the Euro-5 standard to ease supply pressure while a ministerial committee reviews the petroleum supply situation on a daily basis.