Pakistan warns of post-April LNG gap as supplies start to dry up

Pakistan’s Senate Standing Committee on Petroleum has been warned that the country could face difficulties meeting gas demand in the power sector after April 14, as imported LNG supplies are set to lapse.

According to The Nation, officials briefed the committee, chaired by Senator Manzoor Ahmed, during a review of petroleum pricing and fuel availability. The secretary of the Ministry of Energy’s Petroleum Division indicated that because of the ongoing tensions in the Middle East, supply chains for petroleum products have become a significant concern for Islamabad, which relies on the region for nearly 70% of its petroleum requirements.

Under normal conditions, oil shipments from Arab suppliers usually reach Pakistan within four to five days. However, current regional instability has slowed shipping operations, delaying deliveries.

The committee was also informed of the well publicised sharp escalation in global fuel prices. High-speed diesel has risen from $88 per barrel to $187 per barrel, while petrol has increased from $74 to $130 per barrel, the paper added.

As a result, Senator Manzoor Ahmed raised questions over whether oil marketing companies were benefiting from the price increases with the petroleum secretary stating that the adjustments were designed to discourage hoarding and to support continued imports.

Representatives from the Oil and Gas Regulatory Authority also reported that diesel prices have nearly doubled, while petrol prices have risen by around 70% in the past two and a half weeks.

Officials then outlined existing fuel reserves, noting that crude oil stocks are sufficient for 11 days, diesel for 21 days, petrol for 27 days, with common cooking fuel liquefied petroleum gas (LPG) for just nine days and JP-1 aviation fuel for 14 days.