Prime Minister Adviser says no need to increase gas prices

  • Says there is a need to further increase gas prices as the recent hike is enough to meet operational expenditures.
  • Govt is going to set up new LNG terminals and five global companies are interested.
  • Govt floated tenders for five blocks and will soon open up another 35 blocks.
Prime Minister Adviser says no need to increase gas prices
Prime Minister Adviser says no need to increase gas prices

Adviser to PM on Petroleum Nadeem Babar said no need to increase gas prices further as the recent hike is enough to meet operational expenditures.

Talking to media in a press conference, the Adviser said that since Liquefied Natural Gas (LNG) was being used to meet the shortfall, there was a possibility that further hike in LNG would affect the price mechanism.

“Further hike in LNG prices may affect local gas as imported gas is linked with global price fluctuations,” he said.

LNG deals with Qatar have been signed but further contracts will be signed with concerned authorities and their prices will be much better than previous deals, he told.

IMF never demanded to increase gas prices:

The PM Adviser said that the International Monetary Fund (IMF) never demanded the government to increase gas prices.

“IMF only asked us to provide details of the cost and how to recover that cost as there was a circular debt in both gas companies accumulated to Rs168 billion,” he said.

He was of the view that Pakistan should increase its gas resources in order to keep prices in control. He said not a single tender of drilling was floated in the past five years.

“In our tenure, we have floated tenders for five blocks and will open up another 35 blocks in a year’s time,” he added.

Govt to consult with concerned authorities:

Babar further told that the government has consulted with concerned authorities about the difficulties they face while executing drilling tenders.

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It was also revealed that the department has identified six changes and amendments would be made soon.

New LNG Terminals:

Discussing new terminals, he said that five global companies are interested in establishing new LNG terminals.

RLNG Terminals:

The Government is looking for four new RLNG terminals; three would be in Karachi and one would be in Balochistan.

“The companies will be responsible for the entire supply chain for the new terminals as the government doesn’t want to get involved in this business.”

The govt is also making arrangements for the upcoming winter season so gas supply to industries and the domestic consumers would not be interrupted.

Adviser to PM claimed that the government succeeded in reducing unaccounted for gas (UFG) losses for the industrial sector within Sui Northern Gas Pipelines Limited (SNGPL) network to 1.5%.

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