As Pakistan is facing an energy crisis, the federal minister of the Imran Khan government has said that country’s government is taking all possible measures to prevent the looming gas crisis.
Pakistan is on the verge of a massive shortage of gas and rationing due to depleting local gas reserves and the failure of the Imran Khan government to procure a sufficient quantity of Liquified Natural Gas (LNG).
According to The News International, energy minister Hammad Azhar on Monday informed that the Pakistan government has arranged 11 LNG cargoes for the month of November.
Two LNG trading companies have backed out of an agreement made with Pakistan LNG Limited (PLL) to provide two cargoes for November for mammoth monetary gains of up to 200 percent profit in the international spot market, according to the publication.
The two LNG trading companies had made an agreement with PLL, with Italy-based ENI promising to deliver the LNG cargo on November 26-27 and Singapore-based GUNVOR promising delivery on November 19-20.
ENI informed PLL on October 30 that it won’t deliver the term cargo on November 26-27. GUNVOR, meanwhile said that there was a system breakdown at the loading port, which is why it may not deliver the term LNG cargo on November 19-20.
Pakistan’s cost of energy production has increased following an increase in fuel prices. Almost two-thirds of the country’s electricity generation is based on fossil fuels, as per The Tribune.
The rise in crude oil prices have hit the highest in the last three years – USD 86 per barrel, the newspaper reported.
The energy crisis is worsening due to the rising cost of the LNG.
It seems, this winter Pakistan is set to face its third successive winter energy crisis. (ANI)