A severe gas shortage is on the cards after Pakistan decided to hold off on buying expensive liquefied natural gas (LNG) cargoes until early next year, reported Bloomberg.
Singapore-based commodity trading company Trafigura Group responded to the country’s most recent request for LNG imports with two offers for January to February delivery at an approximately 30 percent premium to market prices. However, Pakistan LNG Limited decided on Monday not to buy the cargo, in part due to the heavy price tag.
This is the latest in a series of numerous failed attempts by Pakistan to obtain LNG since last year, forcing local authorities to inflate fuel rates at home. With this week’s decision to abandon any deals with the Singapore-based LNG supplier, the local industry may face a fuel crunch or planned power outages coming winter.
The development comes after Pakistan last month got a $3 billion bailout from the International Monetary Fund to help alleviate its chronic cash shortage and save its economy. Despite the lender’s approval, global LNG suppliers still have several reservations about the country’s credit risk, hence offering fuel shipments but at pricey rates to the cash-strapped South Asian economy.
Overall, the imminent shortage of gas supply to the export-oriented textile industry could create havoc and result in the closure of a number of industries, and a massive decline in the growth of large-scale manufacturing and textile exports during the winter season.
The land of the pure…… pure incompetence.
Any how in such a critical situation in Pakistan
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Unfortunately Pakistan has been ruined by its own people. The situation is very grave. The problem of domestic fuel should be tackled by promoting the use of coal fired cookers and ovens. While coal is dirty but we have no other choice. There is not enough wood. For LNG we do not have dollars. Same is true for LPG. Coal is cheap and can meet the need of masses easily. If you have any other solution please share.
We do not look for long term goals.