The gas consumers in Pakistan are set to face 16 hours of gas loadshedding daily in the upcoming winter season due to depleting gas reservoirs.

Caretaker Federal Minister for Energy Muhammad Ali, in a media briefing, said that the government will provide gas to domestic consumers only for eight hours a day. The government cannot give uninterrupted gas supply to the consumers in the winter season due to depleting gas reservoirs, he added.

The minister categorically said that domestic consumers have to shift from natural gas to LPG gas to meet the gas requirement. He said that the country is facing a depletion of gas reservoirs by 5 to 7 percent annually. He said that the government has decided to maintain a complete ban on new gas connections due to the lack of gas availability in the country.

While responding to queries, Ali said that the government has purchased two cargoes for December 2023 from the spot market. It also plans to purchase two spot cargoes for January 2024.

The minister told the media that the government has increased the gas prices to curtail the circular debt in gas. The circular debt in the gas sector has swelled to Rs. 2,100 billion. After the new gas tariff, the government has stopped the growth in circular debt in the gas sector from now, he said.

He said that the government is promoting exploration activities in the country to meet the local demand. He said that the gas sector has been facing a loss of Rs. 400 billion annually. While elaborating on the losses, he said that the Sui gas companies are facing Rs. 190 billion loss annually. On the other hand, the government has been facing a loss of Rs. 210 billion in LNG due to its cost difference.

Ali said that a Pakistani oil refinery has signed an agreement with Russia to import 9 million barrels annually. He said that Pakistan will save up to $15 per barrel due to this agreement.

Source: Pro Pakistani