Pakistan to sell excess gas in international markets from January 1: petroleum minister – Pakistan
Petroleum Minister Ali Pervaiz Malik said on Sunday that Pakistan would begin selling excess liquefied natural gas (LNG) in international markets from January 1.
Malik’s statement during a press conference in Lahore came months after it was reported that Pakistan was exploring ways to sell excess LNG cargoes amid a gas supply glut that could cost domestic producers millions in annual losses.
He noted that Pakistan had been importing gas from “our friend” Qatar and Italian energy company Eni. But, he continued, there was an excess of this imported gas as the use of this fuel for power generation had reduced in the country during the past few months.
Resultantly, “we were compelled to divert it to domestic consumers, due to which circular debt was increasing in the gas sector”, he said, adding that it also caused a loss of around Rs1,000 billion to Pakistan from 2018-19 till now.
“From January 1, we will sell this excess fuel in international markets and reduce our burden while limiting the loss caused by it,” he added.
Moreover, he said, the measure would also allow Pakistan’s state-owned enterprises in the sector to operate on their full capacity and generate profit.
More to follow
Additional input from Reuters
