Islamabad:
The LNG imported from Qatar is proving to be detrimental to local oil and gas production, which has led to strong reservations over the reduction in forced production.
The federal government has been informed by the province that the move not only affected production but also suffered huge financial losses in terms of royalty and windfall levy.
Local oil and gas companies, including OGDCL and MOL, also suffer from production reduction and loss of revenue due to gas forced shutdown.
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In this regard, these companies have also contacted Prime Minister Shahbaz Sharif and expressed reservations. The Special Assistant to the Chief Minister of Khyber Pakhtunkhwa told the federal government at a recent meeting that forced gas shutdown is not only damaging the reserves but also the financial foundations of the province.
He demanded that an effective and permanent system be made to avoid such measures in the future.
On the other hand, importing expensive LNG while ignoring local production is not only increasing circulation loans but also increasing pressure on the domestic import bill.
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Power sector is reluctant to lift LNG, which causes Pakistan State Oil (PSO) to face severe financial difficulties. Due to the gas closure, Attock Refinery Limited (ARL) has also announced the closure of its central crude distribution unit by June 1, 2025. This unit is capable of 32,400 barrels a day.
It should be noted that the former government made full analysis and planning without LNG contracts from Qatar, which the energy sector is suffering today. One of the two LNG terminals in the country is partially operating due to mismanagement, which has further weakened the energy delivery system.
