Gas shortage ‘not linked with LNG import’

Energy Minister Hamad Azhar has claimed that gas shortage has nothing to do with liquefied natural gas (LNG) import, saying that gas companies will go bankrupt if the government starts giving imported gas to consumers.

“Legislation is being enacted to determine the average price of domestic and imported gas,” the minister said while addressing the OGDCL Annual Technical Conference on Tuesday.

Azhar said that for the last 10 to 15 years there has been a shortage of gas in the winter, while it has become a new statement under the incumbent government – “whether to buy LNG or not”.

The energy minister said, “In the past, this issue was not properly addressed due to which we are running out of gas at the rate of 9% per year.

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“Local gas flow has dropped from 2,000 mmcfd to 800 mmcfd … we are going to legislate on the gas issue.”

Azhar said that unique style of virtual LNG terminals are going to be installed. “These terminals will be able to supply gas to consumers through gas pipelines.”

On gas shortage, he said that huge gas reserves had not been discovered in the country since 1950.

“The government is bringing a tight gas policy,” he said. “Some global companies want to invest in tight gas. We have to go for smart grids in remote areas.”