ISLAMABAD: Prime Minister Shehbaz Sharif has directed authorities to prepare a comprehensive gas load management plan for the coming winter and take steps to ensure uninterrupted gas imports.
He issued the instructions while chairing a meeting on winter gas load management in Islamabad on Tuesday. The Prime Minister’s Office said authorities should complete preparations in advance and launch a public awareness campaign.
Under the proposed plan, domestic consumers will receive priority for locally produced gas. Regasified liquefied natural gas (RLNG) will be prioritised for power generation and industry.
The government also plans to promote alternative energy sources for household use. Officials are considering bank financing facilities for electric appliances used for water and space heating.
Authorities are also working to ensure uninterrupted gas transmission from reserves in Pakistan’s northern regions, according to the PMO.
LNG Imports Under Pressure
The meeting comes as Pakistan works to finalise its LNG import plan for the three winter months from December to February.
The regional situation has complicated the supply outlook. Recent hostilities have disrupted major oil and gas routes, including the Strait of Hormuz and Bab al-Mandab. The disruptions have also pushed fuel prices higher.
Gas companies and the Petroleum Division had sought at least 22 LNG cargoes for the three-month period. However, the energy task force expects to secure between 10 and 12 cargoes on a best-effort basis.
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Each cargo is expected to carry around 100 million cubic feet of gas. Authorities are using diplomatic and logistical channels to secure additional supplies.
The proposed import plan will require approval because each spot cargo could cost around $100 million. It will also require consent from the Ministry of Finance and the State Bank of Pakistan.
Sources cited in recent reporting indicated that actual imports could remain at seven to eight cargoes during the winter period. Market conditions will determine the final number.
Gas Supply and IMF Talks
The LNG import decision also carries implications for Pakistan’s external financing and current account targets.
The Ministry of Finance and the International Monetary Fund (IMF) have agreed on current account targets. An IMF staff mission is currently holding talks in Pakistan that could lead to the release of around $1.2 billion under two programmes.
The government therefore faces a balance between securing sufficient winter gas supplies and managing the cost of imported LNG.
LPG Price Increase
In a related development, the Oil and Gas Regulatory Authority (OGRA) has notified an 8% increase in LPG prices for October.
The increase raises the price of an 11.8-kilogram domestic LPG cylinder by Rs244.14, adding further pressure on household energy costs.
The winter gas plan is expected to determine how available domestic gas and imported RLNG will be allocated during the peak demand period.
