Pakistan slashes oil, gas, LPG production
Pakistan further slashed the oil, gas and LPG (Liquefied Petroleum Gas) production after continuously shrinking demand due to the lockdown imposed because of the coronavirus pandemic.
This reduction in demand is not limited to Pakistan as the entire world is witnessing a reduced oil and gas consumption.
Moreover, the world markets are also experiencing the trend of a slump in oil prices with the economy effectively paralysed by the virus.
The current price of Brent oil is $27.95 per barrel while that of WTI is $20.02.
In this scenario, the daily oil production has been slashed by 30,000 barrels, of gas by 587 million cubic feet and of LPG by 476 million tonnes.
Earlier last week, the PARCO Refinery – the largest facility in Pakistan – suspended its operations after oil consumption reduced dramatically in the country.
The refinery with a daily production of 100,000 barrels of oil was closed on the directives of the petroleum ministry, as it did not have the capacity to store the finished products. However, one unit of the facility would be kept operational.
The move followed the directives issued to the OMCs [oil marketing companies], which were directed to cancel the import contracts in the given circumstances.