KARACHI/LAHORE:
State-owned natural gas producer OGDCL is preparing to increase production for the first time in recent years as the ongoing conflict in the Middle East chokes off supplies, its managing director said.
High electricity tariffs and the 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.
On Monday, Qatar halted LNG production after Iran attacked the country following attacks by the United States and Israel 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% to 40,000 barrels per day, as the conflict has disrupted shipping through the crucial Strait of Hormuz.
OGDCL CEO Ahmed Lak highlighted potential further increases with new discoveries. “This potential can be fully monetized if buyers tap into it,” Lak said.
Pakistan is also exploring the option of reducing regasification of the LNG terminal due to undelivered Qatari cargoes, industry sources said.
The move could ease pressure on Pakistan’s foreign exchange reserves, sources added.
Ogre
The Oil and Gas Regulatory Authority (OGRA) has ordered all LPG marketing companies to submit daily details of their LPG stocks due to the impending fuel crisis caused by the Gulf War.
In a written directive, OGRA instructed companies to report the quantity of LPG available at their storage and filling plants by 9:00 am every day. The report must also include LPG in transit or loaded into vehicles. The information should be sent via email in a prescribed format to [email protected].
Reuters (With input from the Lahore bureau report)
