PM Shehbaz orders gas load management plan for winter, steps for ensuring uninterrupted imports

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Prime Minister Shehbaz Sharif chairs a meeting regarding gas load management during the winter season in Islamabad on Oct 6. — PakPMO via X
Prime Minister Shehbaz Sharif chairs a meeting regarding gas load management during the winter season in Islamabad on Oct 6. — PakPMO via X

Prime Minister Shehbaz Sharif on Tuesday directed the relevant authorities to prepare a comprehensive plan for gas load management and take all necessary measures to ensure uninterrupted gas imports during the winter season, given the regional situation.

He issued these instructions while chairing a meeting on gas load management during the winter season, held in Islamabad, a statement by the Prime Minister’s Office (PMO) said.

“The prime minister directed that a comprehensive plan be devised for gas load management, all necessary measures be taken in advance, an extensive public awareness campaign on the implementation of the gas load management plan be launched and all necessary steps be taken to ensure uninterrupted gas imports, keeping in view the current regional situation,” the PMO said.

The meeting was also briefed on measures taken in advance for gas load management, the statement added.

The participants were informed that domestic consumers would be given priority for the supply of locally produced gas while RLNG would be prioritised for power generation and industries, it said.

Moreover, a public awareness campaign would be launched to promote alternative energy sources at the household level in place of locally supplied gas, according to the statement.

“Measures are also being taken to ensure the uninterrupted transmission of gas from reserves in the northern regions of the country,” the PMO said, adding that a proposal to introduce bank financing facilities for electric appliances used for water and space heating was also under consideration.

The meeting was attended by National Food Security Minister Rana Tanveer Hussain, Economic Affairs Minister Ahad Khan Cheema, Finance Minister Muhammad Aurangzeb, Petroleum Minister Ali Pervaiz Malik, Adviser to the Prime Minister on Industry Haroon Akhtar, Minister of State for Finance and Railways Bilal Azhar Kayani and relevant senior government officials.

The meeting took place as the authorities struggle to finalise the liquefied natural gas (LNG) import plan for the upcoming three winter months — December to February — amid a challenging supply situation stemming from the US-Iran conflict.

Renewed hostilities in the Middle East have resulted in disruption of major oil and gas supply routes — the Strait of Hormuz and Bab al-Mandab — and caused fuel prices to rise.

Against this backdrop, gas companies and the Petroleum Division had sought at least 22 import cargoes for the three-month period, but the task force on energy, led by Lt Gen Zafar Iqbal, has promised no more than 10-12 cargoes of around 100 million cubic feet each on a best-effort basis, using all diplomatic and logistical channels.

The plan will be presented to the prime minister for approval, given the involvement of around $100m per spot cargo and the requirement for consent from the Ministry of Finance and the State Bank of Pakistan.

The matter has assumed greater importance because the LNG import plan will affect the current account targets agreed upon by the Ministry of Finance and the International Monetary Fund, whose staff mission is currently in Pakistan and holding talks that could pave the way for the disbursement of about $1.2 billion under two concurrent programmes.

Sources, meanwhile, indicate that actual LNG imports may not exceed seven to eight cargoes over the three winter months, given prevailing market conditions, which would bring the outcome closer to the Ministry of Finance’s desired level.

In a related development, the Oil and Gas Regulatory Authority (Ogra) has notified an eight per cent increase in liquefied petroleum gas (LPG), raising the cost of the 11.8kg domestic cylinder by Rs244.14 for October.

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