Petroleum Minister warns of gas shortage in winter amid supply woes

Petroleum Minister Ali Pervaiz Malik has warned of a possible gas shortage in Pakistan during the coming winter due to disruption in LNG supplies from Qatar, saying the government is considering measures to provide relief to consumers. 

Addressing a public gathering in Lahore, Ali Malik said that the government was taking steps to ensure adequate gas availability and had informed Prime Minister Shehbaz Sharif about the measures that needed to be taken.

He warned that timely action was necessary to avoid difficulties in arranging gas supplies during the winter.

The minister’s remarks came amid reports of disruption in LNG supplies from Qatar, with concerns also being raised over possible gas shortages during the winter. The minister said that he had submitted recommendations on providing relief to gas consumers similar to the relief being offered on petrol.

“I can only give recommendations on the gas issue; the decision has to be taken by the prime minister and the cabinet,” the minister said, adding that he could not disclose the recommendations before a decision was taken.

Ali Malik said the government was also working to ensure sufficient supplies of liquefied petroleum gas (LPG).

He said Saudi oil giant Aramco determines the contract price, known as the Saudi CP, for LPG and had increased it from $640 to $705 per tonne this time.

The increase in the international benchmark had forced the Oil and Gas Regulatory Authority (OGRA) to raise domestic LPG cylinder prices, he said.

Malik said he had conveyed to the prime minister the measures required to ensure adequate LPG supplies and that a summary had been sent to the cabinet for early arrangements to import LPG from abroad. 

“If possible measures are not taken, there will be neither gas nor a ship to bring it at the last minute,” he warned. He said Pakistan could not simply bring LNG or gas cargoes and keep ships waiting at sea, as storage facilities were required.

“Storage is a 70-year-old issue,” Malik said, adding that he had been in his current position for only around a year and a half.

He also said OGRA determines the price of locally produced gas, whose production had declined significantly.

Speaking about the recent increase in petroleum prices, Malik said the government was aware of the difficulties being faced by the public.

He said the increase had been necessitated by higher international oil prices but assured consumers that relief would be provided as soon as prices in the international market declined. “The government will provide relief to the people as soon as prices in the international market come down,” he said.

He said the government had already provided a petrol subsidy during the difficult period and that the Rs100-per-litre fuel relief scheme was continuing.

More than nine million citizens had registered their vehicles and were benefiting from the subsidy, he said.

The minister said the country and the region were passing through a difficult period, with the ongoing conflict creating challenges for Pakistan. He said the war had engulfed the region and referred to an attack by the Houthis on oil installations in Riyadh.

Pakistan, he said, would not abandon Saudi Arabia in the difficult situation and would stand by it under the Makkah Agreement. He added that Pakistan would work with Türkiye to support Saudi Arabia.

Malik said political leaders needed to set aside differences and unite in the national interest, while all institutions and political forces needed to remain united to protect the country’s borders.

He also said terrorism was once again raising its head in Khyber Pakhtunkhwa and stressed the need for unity to counter the threat.