KARACHI/LAHORE:
State-owned natural gas producer OGDCL is preparing to increase production for the first time in recent years as ongoing conflict in the Middle East chokes supplies, its chief executive said.
High electricity tariffs and rapid adoption of rooftop solar have reduced demand for natural gas in recent years, forcing Pakistan to renegotiate long-term liquefied natural gas (LNG) import contracts with Qatar and domestic producers to reduce production.
Qatar halted its LNG production on Monday after Iran targeted the country following US-Israeli strikes over the weekend.
OGDCL aims to increase natural gas production by 5% to 865 million cubic feet per day. The company also plans to increase crude oil production by 14 percent to 40,000 barrels per day as the conflict disrupted shipping in the crucial Strait of Hormuz.
OGDCL Managing Director Ahmed Lak highlighted the potential for further increase with new discoveries. “This potential can be fully monetized subject to redemption by buyers,” Lak said.
Pakistan is also exploring the possibility of reducing regasification of LNG terminals due to undelivered Qatari cargoes, industry sources said.
The move could ease pressure on Pakistan’s foreign exchange reserves, sources added.
Ogra
The Oil and Gas Regulatory Authority (OGRA) has ordered all LPG marketing companies to submit details of their LPG stocks on a daily basis due to a looming fuel crisis caused by the Gulf War.
In a written directive, OGRA asked companies to report every day by 9:00 a.m. the quantity of LPG available at their storage and filling plants. The report must also include LPG in transit or loaded on vehicles. The information should be sent by email in a prescribed format to [email protected].
Reuters (with input from Lahore bureau report)
