Pakistan energy shortage could last years, blackouts expected this year: Report | World News - Hindustan Times
close_game
close_game

Pakistan energy shortage could last years, blackouts expected this year: Report

Bloomberg |
Oct 04, 2022 11:15 AM IST

Pakistan Energy Shortage: Not one supplier responded to Pakistan LNG Ltd.’s tender to buy the power-plant fuel for between four to six years starting January.

Pakistan’s acute energy shortage is at risk of lasting years after the government was unable to secure a long-term supply of liquefied natural gas.

Pakistan Energy Shortage: Pakistani Prime Minister Shehbaz Sharif during a summit.(Reuters)
Pakistan Energy Shortage: Pakistani Prime Minister Shehbaz Sharif during a summit.(Reuters)

Not one supplier responded to Pakistan LNG Ltd.’s tender to buy the power-plant fuel for between four to six years starting January, said traders with knowledge of the matter. The tender, which closed Monday, was seeking to procure one cargo of LNG each month.

Hindustan Times - your fastest source for breaking news! Read now.

The cash-strapped nation has been hit with widespread blackouts this year after several failed attempts to buy gas from the expensive spot market. It tried to get a long-term deal looking for more reasonable prices, but that hasn’t materialized.

Read more: On Imran Khan leaked audio controversy, Pak PM says, ‘Thief creating chaos’

There’s little LNG supply available until 2026 when massive new export projects start up, according to traders. Many spot cargoes are currently going to Europe, where buyers are willing to pay high prices in the rush to secure gas to replace dwindling Russian pipeline flows. That’s leaving developing nations facing energy shortages and economic uncertainty for years.

The latest blow comes at a difficult time for Pakistan, which is already struggling with high inflation and falling currency reserves. Some LNG suppliers are hesitant to sell fuel to the nation out of fear it may not be able to make future payments, according to traders.

Pakistan’s gas distributor Sui Northern Gas Pipelines Ltd. plans to supply 100,000 LPG cylinders to consumers to deal with a potential gas shortfall this winter, it said in a notice to the stock exchange. The company that caters to customers through pipelines in the northern half of the nation has been asked by the government to take steps to meet energy requirements.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away! - Login Now!

Get Latest World News along with Latest News from India at Hindustan Times.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, March 29, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On