Observer Report
Islamabad
Ministry of Energy (Petroleum Division) on Tuesday vehemently repudiated the content of the interview to a news channel by Miftah Ismail on procurement of LNG by the Government of Pakistan on Tuesday.
The ministry said it was to clarify that the Spot prices for LNG fluctuate during the year in international market. The prices normally remain low during summer and comparatively higher in the winter. Mr. Ismail also pointed out that the current Government should have signed deals for procurement of LNG when prices were low amid Covid-19 lockdown, he must be knowing that the former Government had signed a long-term contracts for 800mmcfd LNG; consequently, the present Government had to ensure that it could dispense available 800mmcfd LNG in every month of the year before it engaged in another long term contract. Otherwise, it would add a huge financial burden on national exchequer created by previous Government by signing a 15 years contract for LNG import.
It is also pertinent to mention here that since previous Government had declared LNG commodity as ‘Petrol’, thereof, only Power and CNG sector and a small scale industry mainly in Punjab could buy and pay for imported LNG. The Government of Pakistan could look at signing new agreement(s) only when LNG could be sold to all customers including domestic users.
