Domestic gas consumers: There will be no supply of LNG on ‘lower’ rates: Hammad

ISLAMABAD: Federal Energy Minister Hammad Azhar said on Friday that the government would not supply imported Liquefied Natural Gas (LNG) to domestic gas consumers on lower rates.

Addressing a news conference, the minister said that 10 to 11 cargos of LNG were tenders to meet the demand, but since the LNG prices had gone up on the international market the imported gas could not be affordable for the domestic consumers. The current government increased natural gas prices for commercial consumers and the CNG sector by several folds over three years. However, the rates for gas supplied to homes had registered a minimal increase.

Govt alarmed at depleting gas reserves

Country’s domestic gas reserves were dropping nine percent per annum and it had become difficult to supply gas to the domestic consumers. The minister said the government was unable to provide cheaper natural gas to the domestic users beyond a certain quantity.

The minister further said that the gas shortage in Karachi was caused by certain factors and the situation would be improved. He said in the past, the government used to divert gas supply from the captive power plants to domestic consumers but the Sindh High Court had issued an order against the process this year. The Sindh High Court would hear the case on December 30, the minister said.

Copyright Business Recorder, 2021