No more gas available in the country, declares Hammad Azhar

Says country’s gas reserves depleting 9% every year: Govt can’t provide expensive LNG beyond a limit

By: News Desk
Published: 03:30 PM, 24 Dec, 2021
No more gas available in the country, declares Hammad Azhar
Caption: Hammad Azhar addresses the news conference.
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Federal Minister for Energy Hammad Azhar on Friday declared that there was no gas available in the country, also admitting that domestic consumers were also not receiving the gas, reported 24NewsHD TV channel.

Addressing a news conference in Islamabad, Hammad Azhar, however, expressed the hope that the gas shortage issue would be resolved very soon, admitting that the government could not supply gas through expensive imports beyond a limit.

The minister said efforts were being made to improve the supply of gas in the system. He said the Sui Southern Gas and Sui Northern Gas companies have been directed to better manage the gas supply.

Hammad Azhar said gas demand increases in the winter and the supply of gas to domestic consumers is preferred in this season. He said the gas reserves in the country decreased by nine percent every year whereas the demand has been on the rise and adding that the government can provide cheaper gas to the consumers up to a certain level.

Azhar said that the system has faced depletion of output with a nine percent reduction each year. “There is a stay on the provision of gas to priority areas,” said Azhar, adding "In the next hearing on December 30, we will bring it up.

"For the past several years, the system has faced gas shortage in the winter season, while demand increases 3-5 times.

"On the other hand, Pakistan’s natural gas reserves are depleting 9% a year. Just in the past two years gas reserves have depleted by 18%, while demand for domestic and industrial usage is on the rise."

Azhar added that imported Liquified Natural Gas (LNG), which Pakistan has increasingly relied on in recent years, has become "extremely expensive". “We are purchasing LNG cargoes at $30-40, which cost billions of rupees to the national exchequer, and then we provide it at cheap rates. Therefore, only a limited supply of LNG can be provided to the domestic pipeline.

“I want to ensure that the SSGC and SNGPL teams are working day and night to improve gas management despite rising demand and yearly decline in gas reserves."