Power sector may be allowed LNG import

The government is considering allowing the power sector to import liquefied natural gas by using spare capacity at LNG terminals, according to The Express Tribune, as power cuts spread amid gas shortages. The Petroleum Division has proposed amending the policy so that unused terminal capacity can be assigned to power plants for their own gas imports.

So far, Pakistan LNG Limited has kept control of the terminals and their idle capacity, even though they have never run at full capacity. Consumers have reportedly paid more than $0.2 million per day in capacity charges, yet state-owned entities did not supply any gas. Supply has tightened after a sharp slowdown in LNG shipments through a vital shipping lane disrupted by the US-Iran war, and Qatar could not ship contracted cargoes, so urgent spot cargoes were arranged at record prices.

Under the proposal, SSGC would be allowed to auction unused capacity at the first terminal and Pakistan LNG Limited would do so at the second, for a period and quota that the relevant regulator will set. The plan now awaits clearance from the Economic Coordination Committee.