Qatar extends LNG force majeure to Dec 29, raising Pakistan winter gas concerns

QatarEnergy has extended its force majeure on liquefied natural gas supplies until December 29, leaving Pakistan's government struggling to secure additional cargoes ahead of winter, according to Geo and Daily Times.

Federal Minister for Petroleum and Natural Resources Ali Pervaiz Malik confirmed the extension to The News. "Yes, Qatar has extended its force majeure on LNG supplies until the end of December," he said.

The extension threatens LNG availability in December and January, when household gas consumption peaks. The government plans to arrange 10 LNG cargoes for the two months, against an estimated requirement of 20. The planned cargoes comprise nine in December and 11 in January.

Household supplies are expected to receive priority, which could leave industrial consumers with restricted gas availability, the reports said.

Officials of the Sui gas companies said household gas demand in Punjab and Khyber Pakhtunkhwa could rise from 500 mmcfd to 1,500 mmcfd during December and January. Domestic demand in Sindh and Balochistan is projected to double from 300 mmcfd to 600 mmcfd.

Separately, Daily Times reported that the Pakistan LPG Marketers Association warned on Saturday of an indefinite strike from November 16 if the government does not include it in consultations on LPG pricing. Senior Vice Chairman Ali Haider said OGRA's price determination formula has become ineffective and that the government is raising local LPG prices without taking stakeholders into confidence. He said, "This policy will unleash a storm of inflation."

The association has asked the Commissioner Karachi to fix the LPG price at Rs340 per kg. FPCCI Vice President Aman Paracha backed its call for a long-term LPG policy after consultation with all stakeholders. The association said OGRA has empowered district administrations to act against overcharging.