PM Shehbaz orders winter gas load management plan

Prime Minister Shehbaz Sharif directed authorities on Tuesday to develop a comprehensive gas load management strategy and ensure uninterrupted gas imports during the winter season due to regional tensions. Addressing a meeting on gas load management in Islamabad, the PM emphasized the need for comprehensive planning, proactive measures, public awareness campaigns, and securing uninterrupted gas imports, considering the current regional context.

Participants were informed that domestic consumers would be prioritized for locally produced gas, while RLNG would be reserved for power generation and industries. Additionally, a public awareness campaign would promote alternate energy sources at the household level. Measures to secure uninterrupted gas transmission from northern reserves were also underway.

A proposal for bank financing facilities for electric appliances used for heating was under consideration. The meeting, which included key ministers and officials, took place amid challenges in finalizing the LNG import plan for December to February, due to the US-Iran conflict disrupting oil and gas supply routes. Gas companies and the Petroleum Division had requested 22 import cargoes, but the energy task force proposed 10-12 cargoes of around 100 million cubic feet each.

The plan will be submitted for approval, considering the high cost per cargo and the need for finance and banking consent. The LNG import plan's significance lies in its impact on the current account targets set by the Ministry of Finance and the International Monetary Fund. Sources suggest actual LNG imports may be lower than initially projected, potentially aligning with the Ministry of Finance's targets.

Meanwhile, Ogra has increased the cost of LPG by 8%, raising the price of an 11.8kg domestic cylinder by Rs244.14 for October.