Gas supply restored to 50% of Punjab’s export sector

Gas supply to at least 50% of Punjab’s export sector restored. Photo: The News/File

ISLAMABAD: Following the intervention of Prime Minister Shebaz Sharif, the government has restored 50% gas to the export sector in Pakistan after gas supply was shut down for a week from July 1-8. More importantly, the RLNG will be supplied to the export sector at $9 per MMBTU with an electricity rate of 9 cents per unit.

Senior Department of Energy and Commerce sources have confirmed to The News that the gas supply which had been suspended due to the non-availability of imported gas has been restored. The decision was made to divert more LNG to the power sector for more power generation to mitigate the intensity of the ongoing 6-2pm power outages across the country. In the month of July, the government managed only eight LNG shipments against the demand for 12 shipments, posting a deficit of 400 mmcfd RLNG.

APTMA management has also entered into talks for the restoration of gas supply and the government has agreed to restore gas supply to captive textile power consumers. Accordingly, SNGPL will restore gas to 50% of the allowable daily consumption quota of average monthly consumption (September 21, Oct. 21 and November 21) from midnight Friday to Saturday (July 8 – 9, 2022).

Contacted, the SNGPL also confirmed that it will restore gas to the textile sector at 00:00 on Friday. However, in August, after Pakistan LNG Limited failed to secure an offer from LNG suppliers for 5 spot LNG cargoes, the country will face a shortfall of 500 million cubic feet per day.