Minister for Energy Hammad Azhar has dismissed claims linking the shortage of gas with the import of liquefied natural gas (LNG), saying that gas companies will not survive if the government starts providing imported gas to consumers.
The minister made these remarks while addressing the Oil & Gas Development Company Ltd (OGDCL) Annual Technical Conference and added that legislation will soon be enacted to determine the average price of domestic as well as imported gas.
The energy minister pointed out that the country has been facing a shortage of gas during the winter months for the past 10 to 15 years. He said that issue was not properly addressed by previous governments and now Pakistan is running out of gas at the rate of 9 percent every year.
He also disclosed that new virtual LNG terminals will be installed in the near future that will supply gas to consumers through gas pipelines.
Speaking about the shortage of gas, the minister mentioned that local gas flow in the country has dropped by more than half from 2,000 mmcfd to 800 mmcfd. He also pointed out that no major gas reserves have been discovered in Pakistan since 1950.
Hammad Azhar said that the government is bringing a tight gas policy soon and some global companies are interested in investing in tight gas. We have to go for smart grids in remote areas, he added.
