No Cheap RLNG for Pakistanis – A tough winter ahead!

Pakistan`s central government planned to carry out fifteen (15) hours long gas load-shedding daily, during upcoming winter. According to the local media reports, domestic consumers will get gas for 9 hours during breakfast, lunch and dinner hours.

Pakistan is a big importer of RLNG

Due to scarcity of natural gas, RLNG is used for gas supply and expensive imported gas is injected into the system so that adequate gas can be supplied to domestic and industrial consumers.

The additional cost of imported RLNG added to the system in winter is not charged to the consumers, but this year the government has decided to add less RLNG to the system besides not taking bills from the consumers.

It is important to mention that the temperature in winters drops below zero especially in the northern part of the country which results in a surge of gas demand. Natural gas fired heaters and stoves are widely used across the country for heating applications.

Surplus Power Generation – an Alternative

Pakistan is a country with surplus power generation capability. However, the complex nature of existing power purchase agreements with privately-owned power producers has encapsulated the country`s economy in a tight snare of circular debt.

This year, the central government has announced a special discount for power consumers in a concessional winter power tariff. According to local media reports, a concession of up to 7 Pakistani rupees will be available to electricity consumers on the surplus units consumed in a given month over the same month of the previous year.