ISLAMABAD, Sep 12 (APP): Minister for Petroleum Division Dr Musadik Masood Malik on Thursday informed the National Assembly that there was no proposal under consideration of the government to lift moratorium on new domestic connections on indigenous gas.
Replying to various questions, the minister said moratorium had been imposed on the provision of new domestic connections on indigenous gas due to scarcity of natural gas in the country. The caretaker government, however, had allowed the new housing schemes to get the liquefied natural gas (LNG) – based connections for domestic use, he added.
He said that the country’s natural gas resources were depleting gradually, with around 7-8 per cent annual depletion in the pipeline gas.
He said that across the world, gas was supplied to the consumers mostly through LPG (Liquefied Petroleum Gas) cylinders while in Pakistan, the consumers got gas through pipelines.
The minister said the Pakistan Sate Oil (PSO) had two LNG sales purchase agreements (SPAs) with Qatar, which were valid till 31st December, 2031. “The PSO imports on average nine LNG cargoes per month, which translates approximately 900 MMCF/day,” he added.
He said the PSO imported LNG on behalf of the gas utility companies which onward sold regasified LNG to their consumers i.e., power, industry, CNG and cement sectors etc.
Moreover, the PSO-Qatar LNG SPA, he added, was a sovereign contract under G to G arrangement with take or pay clauses.
To a question, the minister said the Pakistan State Oil Company Limited’s (PSOCL) outstanding amount from the Pakistan International Airlines (PIA) against jet fuel supplies as of 30th September, 2024 had accumulated to Rs 29.4 billion (Rs15.64 billion principal and Rs 13.4 billion late payment surcharge).
The PIA was failing to honour payment obligations due to its weak financial and liquidity position, he added.
He said the privatization of PIA was in process and the mechanism for the clearance of PSO’s outstanding would be decided after it.
APP/raz-sra
