Day: January 23, 2021

Due to the ongoing circular debt crisis, electricity rates have been increased by Rs1.95 per unit. While the Finance Minister for Energy, Omar Ayub Khan, blames past governments for neglecting the pertinent issue—rightfully so—it is also worth noting that PTI’s tenure has also seen a sharp increase in debt accumulation. As such, to deflect blame entirely is massively unfair. Instead, it is vital to understand that increasing the power tariff is going to burden domestic consumers the most—a faction that neither enjoys subsidies, unlike various industries, nor an uninterrupted provision…

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The Cabinet Committee on Energy (CCOE) has emphasised that in future the government should not guarantee any liquefied natural gas (LNG) supplies, which should be based on a competitive market mechanism. So far, the government has guaranteed LNG supplies which has exposed state-run gas companies to financial risk. Already, a foreign commodity trading company has filed a case against state-run Pakistan State Oil (PSO). During discussion in a recent meeting of the CCOE, the committee chairman noted that the main challenge in relation to new LNG terminals was the allocation…

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ISLAMABAD: The liquefied natural gas (LNG) supply defaults last week by two foreign state-owned companies — Enoc and SOCAR — came as a blessing in disguise to Pakistan as two urgent replacement tenders for February fetched about 16-18 per cent cheaper rates as international market plunged. The urgent tender floated by state-run Pakistan LNG Limited (PLL) for second half of next month attracted the lowest bid of $9.58 per million British thermal unit (MMBTU) or 19.5pc of Brent for Feb 21-22 window from Vitol Trading and $8 per MMBTU or…

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