ISLAMABAD: A meeting of the National Assembly Standing Committee on Petroleum was held under the chairmanship of Mustafa Mahmood, during which Petroleum Minister Ali Pervaiz Malik provided a detailed briefing on the current state of Pakistan’s gas sector.
The minister stated that while the current flow of circular debt in the gas sector is zero, the total circular debt has reached approximately Rs 3,000 billion, of which Rs 1,700 billion is attributable to interest alone. He highlighted that despite global LNG prices reaching $30 per cargo, Qatar continues to supply LNG to Pakistan under existing agreements, which Pakistan values highly.
Ali Pervaiz Malik clarified that although a continued rise in circular debt could have forced an increase in gas prices, gas rates will remain unchanged this year.
The minister also highlighted fluctuations in gas demand within the power sector, noting that usage reaches 800 mmcfd in the morning and drops to 400 mmcfd in the afternoon. He further stated that gas demand from the power sector has risen from 200 mmcfd in January to 500 mmcfd currently.
The committee was informed that Turkish Petroleum will undertake offshore drilling in the Indus Basin, with Pakistani companies participating in a joint venture and contributing capital.
Officials from Sui Southern Gas Company reported that gas demand in Balochistan doubles during winter, rising from 70 mmcfd in summer to 155 mmcfd in winter. They added that the sector faces an annual loss of Rs 12 billion, partly due to reduced output from the Jhal Magsi well. Efforts to control losses have led to a 60 per cent reduction, with plans underway to bring the loss rate down to single digits.
The meeting provided lawmakers with a comprehensive overview of supply, demand, and ongoing measures to stabilise Pakistan’s gas sector.
