The Ministry of Energy has devised another plan to augment the imports of Liquefied Natural Gas (LNG), boost its supply, and minimize the demand-supply imbalance for three years.
The incumbent government has failed to make any significant progress in addressing the supply constraints on the availability of natural gas. Now, the ministry has proposed a plan for the construction of a natural gas storage and a south-north pipeline to expand the imports of LNG.
Pakistan also has a high demand for natural gas but the failure and inactivity of the government have resulted in stagnation in its supply. The cost of natural gas has also increased due to the poor management of primary energy resources.
According to experts, the government had not fully utilized the available capacity of the existing LNG terminals, which is why it had to depend on costly furnace oil (FO) and high-speed diesel (HSD) for the generation of power.
The government had chosen FO and HSD even though there were terminals with excess idle capacities for the import and regasification of LNG.
The experts accepted that changes are always made due to unknown factors, including weather conditions, but stated that they “have significant data to be able to project demand. There is no perfect science for it, but planning will yield better results than the current approach of blindly following the demand pattern”.
They added, “Unless we learn this, competitive market development would continue to be a dream”.