Govt eyes Russia, Nigeria fuel

Seeks alternative oil and LNG supplies amid crisis

ISLAMABAD:

Amid the ongoing Iran-US war, Pakistan is scrambling to secure alternative fuel supplies and avert a deepening energy crisis, turning to countries such as Russia, Nigeria and Venezuela while also seeking liquefied natural gas (LNG) from the open market.

In a key development, Pakistan LNG Limited (PLL) has floated a tender to procure three LNG cargoes after Qatar declared force majeure and was unable to ship supplies due to Middle East tensions.

The disruption has compounded domestic energy pressures, with the country currently facing load shedding linked to the unavailability of LNG for power plants, resulting in an estimated electricity shortfall of 6,000MW.

Traditionally reliant on oil imports from Saudi Arabia, the UAE and Kuwait, Pakistan has seen its supply chains strained after Iran closed the Strait of Hormuz amid the conflict with the United States.

Oil-importing companies have struggled to secure cargoes, pushing costs higher. Pakistan State Oil (PSO) has already imported diesel at a record premium of up to $34 per barrel, a development that could translate into a Rs120 per litre increase.

The issue of sourcing fuel from Russia and other countries was taken up by the executive committee (EC) of the National Coordination and Management Council (NCMC), which directed the Petroleum Division to explore potential supply options while factoring in crude composition and compatibility with Pakistan's refining capacity.

"Any decision regarding securing of future cargoes, especially by Pakistan State Oil (PSO) beyond the authority ceiling and pricing, including source country selection and evaluation of options, will be approved through the executive committee of NCMC before finalisation of a decision."

The council also directed that the OGRA team, in collaboration with the Ministry of IT, Petroleum Division and provincial stakeholders, conduct a comprehensive mapping of the oil supply chain to identify system limitations and develop an integrated architecture aimed at a one-window solution.

It said OGRA would also define an efficient data tallying system to ensure that data entered by petrol pumps is accurate and does not enable hoarding or embezzlement of oil resources.