Pakistan has already imported two cargoes of LNG from the spot market in September at the then record high price of slightly above $20 per mmbtu…reports Asian Lite News
A gas crisis is brewing in Pakistan as the spot price of liquefied natural gas (LNG) has shot up beyond affordable levels and touched an all-time high of $56.3 per million British thermal units (mmbtu) in the Asian market ahead of the winter season.
Pakistan has already imported two cargoes of LNG from the spot market in September at the then record high price of slightly above $20 per mmbtu, Express Tribune reported.
Pakistan has no control over LNG prices in Asia and global spot markets. It, however, may slash import of the fuel for the next couple of months to avoid the high price and adopt alternative solutions during winter, the report said.
“LNG price may remain elevated globally till December-January due to the winter season,” independent macro-economist Ammar H. Khan said.
Pakistan has been facing a gas crisis during winter season for the past three consecutive years and the spike in global LNG price suggests that the crisis will erupt for the fourth straight year under the Pakistan Tehreek-e-Insaf (PTI) government, the report said.
The consumption of gas rises in most parts of the country in the winter season as households turn on heaters and geysers after temperature falls below zero degree Celsius. Pakistan’s dependence on imported energy is on the rise due to low production of oil and gas from local fields.
People living in cold areas might use electric heaters and generators this winter after the government announced a reduction of Rs 5-7 per unit on the additional use of electricity compared to the same period last year, Khan said.