Winter gas plan may need 21 costly spot LNG cargoes if Qatar supply is not restored

ISLAMABAD (Atemad Desk): Meeting winter gas demand will be a major challenge if LNG supply from Qatar is not restored. The Ministry of Petroleum has started work on a winter gas plan, and a proposal to import spot cargoes is under consideration.

According to ministry sources, a total of 21 LNG cargoes will be needed in winter. A spot cargo costs $30 per mmBtu, while under the long-term agreement with Qatar the price is $13 to $16 per mmBtu. Spot cargoes will thus be $17 per mmBtu more expensive than Qatari gas.

The winter gas plan will be sent to the federal government for approval and will be implemented after the federal cabinet approves it. Pakistan meets 40 per cent of its winter gas shortfall through LNG, so the additional burden of costly spot cargoes will fall on consumers.