The government has no proposals to lift the moratorium on new domestic connections for indigenous gas, Petroleum Minister Musadik Malik informed the National Assembly on Thursday.
In response to various inquiries, the minister explained that the moratorium was implemented due to a shortage of natural gas in the country. But the caretaker government has permitted new housing schemes to receive liquefied natural gas (LNG) connections for domestic use, he added.
Malik noted that Pakistan’s natural gas resources are gradually depleting, with an annual depletion rate of approximately 7% to 8% for pipeline gas. He pointed out that while gas was primarily supplied to consumers worldwide through LPG cylinders, Pakistan relies on pipeline distribution.
The minister went on to add that the Pakistan State Oil holds two LNG sales purchase agreements with Qatar, valid until December 31, 2031.
“The PSO imports on average nine LNG cargoes per month, which translates approximately 900 MMCF/day,” he said and added that such imports are facilitated on behalf of gas utility companies, which then supply regasified LNG to various sectors, including power, industry, CNG, and cement.
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While speaking about the financial matters, the minister stated that the PSO’s outstanding amount from Pakistan International Airlines for jet fuel supplies has reached Rs29.4 billion, comprising Rs 15.64 billion in principal and Rs13.4 billion in late payment surcharges.
He attributed PIA’s failure to meet its payment obligations to its poor financial and liquidity position, while noting that the privatisation process for PIA was under way. “The approach for clearing PSO’s outstanding amounts will be determined after this process.”
