In response to the potential countrywide gas shortfall in the forthcoming winter, the Board of Directors of SNGPL has approved the project of liquefied petroleum gas (LPG) distribution with 100,000 cylinders.
Sui Northern Gas Pipelines Limited (SNGPL), in a letter to the Pakistan Stock Exchange Limited (PSX) and the Securities and Exchange Commission of Pakistan (SECP), has mentioned these details.
This is in accordance with the advice of the Ministry of Energy (Petroleum Division) to explore all possible options to meet the energy needs of consumers, including the supply of LPG cylinders. According to the letter, the estimated initial investment for this project is up to Rs. 1.2 billion.
Prior to this, Secretary Petroleum Ministry Ali Raza Bhutta, while briefing the Public Accounts Committee (PAC) regarding the natural gas reserves in Pakistan, highlighted that Pakistan’s natural gas reserves are declining sharply, while the gas prices in the international market have also shot up. Both these factors could drive Pakistan toward a gas crisis in the upcoming winter season.
The Secretary said that local gas reserves were not enough to meet the country’s demand and that the gas reserves in Pakistan were declining by 10 percent annually.
Moreover, he mentioned that Pakistan is in no position to buy gas for the winter as the gas prices in the international market have inflated by two to three percent.