KARACHI/LAHORE:
State natural gas producer OGDCL is preparing to increase production for the first time in recent years as the ongoing conflict in the Middle East choked supplies, its CEO said.
High electricity tariffs and 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 output.
On Monday, Qatar halted LNG production after Iran targeted the country following the US-Israeli attacks 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 output by 14% to 40,000 barrels a day as the conflict has disrupted shipping through the crucial Strait of Hormuz.
OGDCL managing director Ahmed Lak emphasized potential further increases with new discoveries. “This potential can be fully served subject to buy-backs,” Lak said.
Pakistan is also exploring the possibility of reducing regasification of LNG terminals 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 asked all LPG marketing companies to submit daily information on their LPG stocks due to a looming fuel crisis caused by the Gulf War.
In a written directive, OGRA directed companies to report the quantity of LPG available at their storage and filling facilities by 9:00 every day. The report must also include LPG in transit or loaded on vehicles. The information should be sent by email in a prescribed format to [email protected].
Reuters (With input from Lahore Bureau report)
