ISLAMABAD: With the country already grappling with inflation and a growing gas deficit, the government is set to zero in on the amount it must divert expensive imported RLNG to domestic consumers this winter.
According to a report, officials aware of the matter said that at least Rs 108 billion worth of imported LNG was pumped into the domestic sector in the last four winters and its cost is yet to be recovered.
The country’s gas sector is already saddled with a huge revolving debt of Rs 1500 billion due to which it faces a revolving debt of Rs 2500 billion like the power sector. And during this winter, the government is keen to inject 250-350mmcfd of LNG into the domestic sector to meet the energy needs of the domestic sector. This will cost the government another Rs 110 billion,” a senior power ministry official told JEE News on condition of anonymity.
In the last four winters, a total of Rs 174 billion worth of LNG was pumped into the domestic sector. Of this, the government paid Rs 66 billion to PLL (Pakistan LNG Limited) to clear its dues and the remaining Rs 108 billion.
“Even now, we have Rs 19 billion for subsidy financing, which is very less if the government diverts RLNG to the domestic sector during the coming winter,” the official said.
In this regard, the Petroleum Division is in touch with the Ministry of Finance to finalize further subsidies so that the cost of LNG cannot be recovered so far. The cost of LNG consumed by the domestic sector during winter season cannot be charged to consumers as RLNG is a ring commodity.
The domestic sector is charged only for sale of system gas (domestic natural gas). Unless the weighted average price of gas is applied after blending of natural gas and imported RLNG, the price of RLNG cannot be charged to domestic gas consumers.
Gas company officials have worked on a gas deficit of 1-1.2 BCFD (billion cubic feet per day) for the peak winter month of January.
Meanwhile, gas will be shut off to non-export industry and CNG sector. The current supply of gas to the export sector will be halved and more importantly, the current supply of RLNG to the power sector will be reduced by 40-50%.
However, the government, even after diverting 250-350mmcfd RLNG to the domestic sector, will ensure three times the supply of gas to domestic consumers for cooking purposes as there is a huge deficit of piped gas.
The two gas utilities – Sui Northern and Sui Southern – will also import 20,000 metric tonnes of LPG for the public on a daily basis at a price of over Rs 2,300 per cylinder and charge a one-time price of Rs 7,000 per cylinder. will be done
The official said the government has planned to generate 3,960-4,000 MW more from coal during the winter season with more emphasis on nuclear power generation to meet the country’s power demand of 12,000-13,000 MW. . At some point during the winter season, the power demand will reach 9000 MW.
