Pakistan State Oil (PSO) is grappling with worsening financial problems due to operational disruptions in its supply chain, as domestic demand for liquefied natural gas (LNG) has sharply declined, PressTonight reported on Friday. Despite maintaining a long-term contract with Qatar for LNG imports, PSO now faces an overstock crisis due to a significant reduction in LNG consumption by the power sector.
PSO Managing Director Syed Taha informed the National Assembly’s Standing Committee on Energy that the power industry, which once off-took two LNG cargoes a month, has drastically cut its consumption. “The power sector was consuming 600 million cubic feet of LNG, but this has now significantly decreased,” Taha explained, highlighting the operational challenges this has posed for PSO.
MNA Syed Naveed Qamar emphasized the urgency of resolving the disparity between PSO’s supply and the power sector’s demand, calling for an immediate agreement to mitigate the financial impact on the state-owned corporation.
The meeting also touched on the issue of substandard fuel in the country, with representatives from the Oil and Gas Regulatory Authority (Ogra), PSO, and the Hydrocarbon Development Institute of Pakistan (HDIP) briefing the committee. Director General of Oil Imran Ahmad clarified that fuel standards are set by the DG Oil Office, and compliance is overseen by Ogra to maintain quality benchmarks.
