PM Khan orders speedy licensing for domestic gas exploration amid winter shortages

In this photo workers are pictured at a site of Sui Southern Gas, Pakistan shared on July 18, 2017. (Photo courtesy: Sui Southern Gas)

• Gas shortfall is expected to be around 1,000 mmcfd during the winter season.
• Pakistan has become emerging buyer in international LNG market over last few years

ISLAMABAD: Prime Minister Imran Khan ordered on Wednesday the fact-tracking of licenses for domestic gas exploration as the country is facing shortages, aggravated by increased use during the winter season.
Pakistan has been struggling with energy shortages and rising power prices. It imports more than half of its Liquefied Natural Gas (LNG) through long-term contracts, which buffers it somewhat from spot price volatility. In recent months, there have been a spate of cancelations of cargoes.
The country with a population of over 210 million has struggled with energy shortages and rising power prices, with electricity still not available to 50 million people in the country who need it, according to a 2018 World Bank report.
It has become an emerging buyer in the international LNG market over the last few years, with an increasing gap between demand and supply of gas.
“The Prime Minister directed to fast track the issuance of licenses for domestic exploration as it is the cheapest source of natural gas. He also directed the concerned departments to remove hurdles in the process of installation of new LNG terminals and virtual pipeline projects by investors,” the PM’s office said in a statement.
Gas shortfall is expected to be around 1,000 mmcfd during the winter season, according to official estimates.
On Sunday, Energy Minister Hammad Azhar said in a tweet that imported LNG has been “too expensive to plug this shortfall.”