ISLAMABAD: Gas crisis seems testing nerve of the ruling elite as it took central place in the cabinet meeting held here on Tuesday with prime minister, Imran Khan, in the chair.
The cabinet members expressed their serious concern over worsening gas crisis. Many of them conveyed their concern to the prime minister on the issue. Those who raised the gas shortage issue in the federal cabinet meeting included Commerce minister, Abdul Razak Dawood and at least half a dozen other cabinet members. Senator elect and advisor on Finance, Shaukat Tarin, also supported those who were concerned over worsening gas crisis.
This group of cabinet member did not take Energy minister, Hammad Azhar’s explanation seriously and argued in the meeting that they were facing questions from media and the public over gas loadshedding in winter season. The government has failed to make timely arrangements for import of liquified natural gas (LPG) to plug- off the gap between demand and supply of gas during winter season. Abdul Razak Dawood told the prime minuster that gas shortage was going to slow down Pakistan’s exports in coming months. Meanwhile, Aftab Siddiqi, a ruling party MNA from Karachi, strongly condemned Hammad Azhar’s style of addressing gas crisis. In his letter addressed to Hammad Azhar, Aftab Siddiqi said ” Your attitude towards gas crisis is shameful”.
After heated debate in the cabinet meeting, the prime minister constituted a 3-member committee to sort out gas shortage issue. The committee included Hammad Azhar, Shaukat Tarin and Razak Dawood.
With turning of winter harsh from mid December, gas crisis is almost getting unmanageable in the country. The government has no solution to rising demand of gas with turning of winter season merciless. Its
officials have two minds on import of liqufied natural gas (LNG). Their first worry is its cost in million of dollars and shrinking dollars reserves for payment to LNG suppliers. Second, its landed cost as high as $ 30 plus per British Thermal Unit (BTU) is problematic. They fear that LNG import at such a high rates may haunt them at some later stage.
“Its very difficult equation for LNG import as its rates are rocketing in international market and it can cost hundreds of million of dollars to Pakistan and if you do not go for import its ultimate result would be severe gas shortage at home to bite the end consumers in peak winter season”, a senior decision -maker on LNG import said while talking informally to NEWSMAN .
Pakistan’s gas demand goes up to close to 7 trillion cubic feet (TCF) during peak winter season which adds massively to its dependence on import of LNG due to depleting domestic production. Pakistan’s gas production is on the downing trend. Pakistan produces roughly 5 TCF gas locally whereas its consumption is 7 TCF. This shows a gap of 2 TCF in demand and supply of gas. Pakistan is trying to plug off its gap in demand and supply of gas with imported LNG. Here again it faces a difficult situation that weak financial position makes it difficult for Pakistan to import LNG to match rising consumption in peak winter season.
The officials said Pakistan will remain in the same difficult situation as long as its local consumption does not match its demand.
