Hammad for WACOG legislation to meet increased demand of gas
Last updated on: 22 November,2021 05:01 am
WACOG is pricing mechanism that takes into account blended costs of both indigenous and imported gas
ISLAMABAD (Dunya News) - Minister for Energy Hammad Azhar on Sunday underlined the need for crafting Weighted Average Cost of Gas (WACOG) legislation to meet increased demand of the commodity especially in peak winter season.
“During winters a demand spike occurs in local gas circuit which cannot be plugged by imported LNG till WACOG legislation,” he said in a tweet.
Elaborating, the minister said the country have two gas circuits in operation, under which 70 per cent was based on local gas and 30 per cent on imported Liquefied Natural Gas (LNG).
“Both circuits are ring-fenced in pricing & supply.” The WACOG is the pricing mechanism that takes into account the blended costs of both indigenous and imported gas.
LNG 101: We have 2 gas circuits in operation in Pakistan. 70% is based on local gas & 30% on imported LNG. Both circuits are ring-fenced in pricing & supply. During winters a demand spike occurs in local gas circuit which cannot be plugged by imported LNG till WACOG legislation.
— Hammad Azhar (@Hammad_Azhar) November 21, 2021