Page 5 - AsianOil Week 45 2022

AsianOil COMMENTARY AsianOil

Meanwhile, the country’s consumption came As such, it made sense for Pakistan to
to 41.2 bcm in 2020, after peaking at 44.5 bcm in embrace LNG, given the lack of viable alterna-
the previous year. Pakistan has relied on LNG to tives. Fuel oil is not only more expensive than
fill the gap since launching its first regasification gas, under normal conditions, but its use also
terminal in 2015, with supplies reaching 10.6 undermines the country’s climate objectives.
bcm in 2020, two-thirds of which originated in The country has a much vaunted programme to
Qatar. expand its nuclear power capacity, but progress
The government has made successive to date has been limited. The role of renewables
attempts to bolster domestic gas production, by is expanding, but only slowly, and in a country
issuing more and more licences, but so far these with weak energy infrastructure and prone to
efforts have not paid off. The amount of sizable blackouts, there is a limit to how useful intermit-
discoveries in recent years has been few, and tent energy supply is. Hydro dams can provide
efforts to exploit the country’s shale gas resources as much as a third of Pakistan’s power, but their
have so far been fruitless. output is heavily dependent on water levels. ™

SOUTH ASIA

Pakistan govt refutes report of looming

gasoline and diesel shortage

POLICY THE government of Pakistan has refuted reports OCAC said Pakistan faced fuel supply shortages
that the country is facing a shortage in gasoline in some areas due to inadequate imports and
Pakistan is thought to and diesel stocks. limited local availability, and called for special
be scrambling for fuel Responding to a letter sent by the Oil Com- measures to be taken.
supplies. panies Advisory Council (OCAC) last week to “Keeping in view the ongoing sales trend, we
the Oil and Gas Regulatory Authority (OGRA) foresee product availability challenges in various
warning that a fuel shortage is looming, the pockets of the country in days to come due to
authority replied that news reports and rumours inadequate imports and limited local avails,” said
of a fuel shortage are “baseless and contrary to the OCAC, a representative body of Pakistan’s oil
facts.” sector.
Local media reported on the OCAC letter, The OCAC said that during a review of prod-
leading to concern among the populace of pos- uct availability for the month of November, it had
sible gasoline and diesel shortages. determined that there exists a deficit of 210,000
The Petroleum Division of the Ministry of tonnes of diesel and 147,000 tonnes of gasoline.
Energy said that stocks are sufficient to fulfil It added that diesel imports during November
demand and cited OCAC data that shows gaso- may prove challenging due to limited availability
line stocks are at around 550,000 tonnes, which in international markets and high costs.
is good for 21 days, with diesel stocks at 438,000 According to media reports, the OCAC
tonnes, which will supply demand for 15 days. said sufficient gasoline imports to meet
“Pakistan State Oil’s (PSO) planned import demand and expected sales have yet to be
of diesel for the month of November 2022 is scheduled because oil marketing companies
around 220,000 tonnes, out of which one cargo have failed to finalise their import plans. The
is on the way to Karachi and is expected to arrive organisation said sales had been higher than
on November 12, 2022, while cargoes of other anticipated in October and that now many
oil marketing companies are in line to meet the distributors had low stocks. OCAC asked
country's planned demand,” the statement said, the regulator to issue directives to importing
according to local media. companies that they pay strict adherence to
In its letter to the regulatory authority, the import plans to avoid a shortage. ™

Week 45 14•November•2022 www. NEWSBASE .com P5