Exports and non-exports in Punjab without gas until July 9

• Punjab’s export and non-export sectors are without gas until July 9.
• Pakistan LNG Limited failed in three efforts to buy LNG on international spot market.
• Government will reassess its decision after Eid-ul-Azha.

Punjab’s export and non-export sectors are without gas until July 9, The News reported.

The decision to suspend gas supplies was made to transfer LNG supply to the power sector so more electricity could be generated to reduce the intensity of hour-long power outages affecting the entire country.

After Eidul Azha, the government will reconsider.

In July, the government will have eight LNG cargoes compared to 12 cargoes needed, a 400mmcfd RLNG shortage.

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Pakistan LNG Limited (LNG) failed in three efforts to buy LNG on the international spot market. ENI defaulted on a July 8 LNG cargo. A top Petroleum Division official claimed the government is on a tightrope and has no room for industry.

“It has also been decided to cut off gas supplies to the export industry and non-export sector in Sindh for 24 hours starting Monday due to a gas supply constraint in Sui Southern Gas Company’s system, resulting in low pressure in the system.

If hydrogenation increases by mid-July, the government may be able to reinstate gas exports.

All Pakistan Textile Mills Association (APTMA) Executive Director Shahid Sattar confirmed the news to The News. He noted that the textile industry expected July exports to plummet due to gas shortages.

Gas supplies to the industrial sector, especially captive Power Plants, has been shut off till July 9, and the government will reassess its decision after Eidul Azha.

Loadshedding is the government’s biggest challenge. Lower coal stocks prevent Port Qasim, Sahiwal, and China HUB from operating at full capacity. Port Qasim and Sahiwal are producing 312 MW and 330 MW, respectively.

China HUB can generate 1,320 MW but generates over 600 MW. Thursday, the government generated 20,774 MW against a demand of over 28,000 MW, a 7,000 MW shortage. “We can’t afford $450/tonne coal. We’re in talks with Afghanistan’s government to buy coal using Pakistani rupees.

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