Petroleum Division issues explanation for purchasing costliest LNG since 2015
Petroleum Division issues explanation for purchasing costliest LNG since 2015
ISLAMABAD (Dunya News) - The petroleum Division has issued an explanation over the purchase of all-time high priced Liquefied Natural Gas (LNG) since the country began its import in 2015.
According to the clarification issued by the Petroleum Division, one third of the monthly domestic requirement of LNG continues to be procured on spot basis, two thirds of LNG is procured under long term contracts. LNG purchased through long-term contracts is in line with the global average of importing countries, it stated.
According to the Petroleum Division, there are several reasons for the recent increase in the price of spot LNG. Due to the situation, the PLL board had to open 4 LNG spot tenders for September. Failing to procure LNG would have made electricity 20 percent more expensive than furnace oil in September, even more expensive than diesel.
According to the statement, no one can predict the future prices of LNG. LNG prices continue to fluctuate according to supply and demand. Crude oil prices in the world market are close to $75 per barrel. The price of imported coal has risen by 45% since the energy sector products tend to be more expensive. The government is focusing on increasing local gas production.
