ISLAMABAD – Ministry of Energy on Saturday said that government has arranged 12 LNG cargoes for the upcoming month of January, which would improve the gas supply in the country.
Ministry of Energy said one cargo, which was scheduled to reach on 30th of this month, will now arrive in January. In addition, volume has been increased in certain cargoes. With these robust steps, the load management plan approved by the Cabinet for this winter remains undisturbed, whereby curtailment will be done primarily for CNG and captive power units, as needed.
According to the ministry, city loads have increased by more than nine percent in SNGPL in the last week alone on account of a severe cold wave resulting in pressure drops. The SSGC faces similar drops in Karachi and Quetta. Therefore, the ministry requested the people to use gas responsibly and report any domestic consumers using compressors, which is another major reason for pressure drops.
It is pertinent to mention here that Pakistan will be moving 30 percent more LNG molecules in this January compared to January 2018, at the cheapest ever price of $6.34 for a peak winter month.
Load management plan approved by cabinet for this winter remains undisturbed
Earlier, the media reports stated that the country is likely to face gas shortage in January as out of six LNG cargoes tenders, bids have been received only for three cargoes and that’s too far higher than the long-term agreement signed during the previous government. Pakistan LNG Limited (PLL) has received high bids from 15.3209 to 33.9499 per cent of Brent for the supply of LNG in January 2021, which is far higher than the price of the LNG supplied under long-term agreements with different supplies, it is learnt reliably here.
The reports suggested that if no alternate arrangements were made the country is likely to face a deficit of 300 MMCFD in RLNG supply from Jan 8 to Jan 18, 2021.The companies which have submitted their bids for the LNG supplies, during Jan 20 to Feb 01,2021, include Socar, Vitol, Trafigura and Energy Asia/ENOC, official source told The Nation. For January 8 to Jan 11 2021, Jan 12 to Jan 14 and Jan 15 to 18 2021, not a single company has submitted any bid.
For Jan 20 to Jan 21, 2021 Qatar Petroleum has submitted bids of 17.3203 per cent of Brent, Jan 26 to Jan 27, 2021, 17.3207 of Brent, while for Jan 29 to Feb 1, 2021 it has submitted a bid of 15.3209 percent of Brent. Tenders for delivery of three LNG cargoes fail to receive any bid.
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