Musadik Malik claims that even with the additional LNG in January, gas load-shedding is unavoidable.

ISLAMABAD: Musadik Malik, the Minister of State for Petroleum, issued a warning on Monday, stating that despite plans to import 200 million additional cubic feet per day (MMCFD) of liquefied natural gas (LNG) in January and February 2023 compared to the same time last year, gas load-shedding is still likely to occur in the near future.

Gas load-shedding will be inevitable, according to Malik, who briefed the Senate Standing Committee on Petroleum during a meeting presided over by Senator Mohammad Abdul Qadir. “Despite the availability of an extra LNG cargo during the forthcoming high winter season,” Malik said.

“Pakistan will receive ten LNG cargoes in January, nine of which will be ready for domestic consumption in February, while the remaining liquefied gas would be purchased by state-run enterprises.”

Malik promised that the government would stimulate business investment in fresh LNG installations.

The provision of gas at a reduced price to the manufacturers of fertilizers drew criticism from the state petroleum minister.

The minister claimed that under pressure from the fertiliser mafia, gas that normally costs Rs4,000/MMBTU was given to the industries that make fertilizer for just Rs250/MMBTU.

Poor common consumers must pay $17 per MMBTU for gas, while the exporting industry only has to pay $9 per MMBTU. Fertilizer manufacturers, meanwhile, only have to pay a pitiful $1.35 to $3 per MMBTU.

He continued, “We have to find a balance between gas pricing. It is true that exports are also crucial, the circular debt in the gas sector has grown to Rs1,500 billion. When gas was $2–$2.5/MMBTU, we chose not to purchase any. Now, the price per MMBTU is $40.

Malik also disclosed to the gathering that the nation intended to buy 20,000 tonnes of liquefied petroleum gas (LPG) in order to get through the colder months.

Saifullah Abro, a senator for PTI, remarked at the time that foreign investment in the gas industry would be very welcome. However, Senator Abro cautioned, “We need to be vigilant that these investing businesses trap the nation into paying them capacity payments like some independent power producers (IPPs).”

Abro and Malik sparred at the meeting on the improper handling of the LNG purchase.