In a tweet, the minister said that ban had been imposed on new domestic schemes till the weighted average cost of gas (WACOG) pricing. Third-Party Access to pipelines granted for upcoming LNG terminals, he said.
He said fast paced agreements with Russia over north-south pipeline.
3 important decisions have been taken in last 3 months to fix our gas sector's issues;
1) Ban on new domestic schemes till WACOG pricing.
2) Third Party Access to pipelines granted for 2 upcoming LNG terminals.
3) Fast paced Agreements with Russia over north-south pipeline.
— Hammad Azhar (@Hammad_Azhar) November 4, 2021
Pakistan’s gas reserves are depleting at an alarming rate of nine percent per annum whilst our energy needs and the size of the population are growing. To bridge the gap, we import LNG from abroad, but there are two major issues with that practice. Firstly, we have no LNG storages, and therefore the cargoes must be perfectly timed. That is the reason the current supply chain has no flexibility.
Any interruption in supply or demand creates disruptions throughout the energy chain. Secondly, the current gas pricing mechanism in Pakistan does not allow us to fully recover from the customers the cost of the LNG cargoes. Therefore, our ability to use imported gas to meet the unmet demand in our local economy is limited.
Energy stocks are set to open higher, as weaker oil and natural gas prices are being offset by sharply rising broader index futures. S&P 500 futures were recently indicating gains at the open of nearly 1%. News flow in the energy sector is light as the earnings season is quickly approaching.
The OPEC+ will also increase oil output by 400,000 barrels per day in December and thus made a decision not to accelerate production growth, according to a communique adopted after the Thursday meeting.
“Reconfirm the production adjustment plan and the monthly production adjustment mechanism approved at the 19th OPEC and non-OPEC Ministerial Meeting and the decision to adjust upward the monthly overall production by 0.4 mb/d for the month of December 2021, as per the attached schedule,” the
The alliance also decided to “hold the 23rd OPEC and non-OPEC Ministerial Meeting on 2 December 2021.”