The only concern, it seems, the present government has with liquefied natural gas (LNG) is its use in prosecuting opposition figures. It is a sad paradox that the only contract for the long-term supply of LNG that the government can show is the deal with Qatar, for which NAB had arrested former Prime Minister Shahid Khaqan Abbassi, former Finance Minister Miftah Ismail, as well as the then Petroleum Secretary. Let alone sign a long-term deal, which would assure the country of LNG supplies in the medium term, the government was unable to place orders for spot cargoes while prices were low because of the covid-19 recession. One result was the recent shortage, which not only meant consumers could not cook, but that electric plants had to use much more expensive furnace oil to generate electricity.
The government, to handle the shortage, then apparently panicked, and bought LNG at whatever price it was charged. The result has been that the government has committed to pay more than $400 million too much. The government itself is not affected, but that money will be a pass-through item which will be paid by the consumer. The gas distribution companies have not asked for tariff increases, but that is likely to be coming soon.
It seems ironic that that seems to be the situation, for the PTI government had brought in industry insiders to handle the situation, with the only result being first a petrol pricing scandal about a year ago, and now this fecklessness which has not only affected the gas supply, but also the price of electricity. Another problem was seen when Energy SAPM Tabish Gauhar was in office, when he dealt with the minister, Hammad Azhar, as someone who knew nothing and should be isolated, instead of acknowledging that he was the political master of the ministry, to be facilitated and given good advice. That he had resigned earlier this year and was brought back in only a few months later indicates that the power struggle within the power ministry is still ongoing and it should never be forgotten among the turf battles that it is the consumer who has to pay the price, both of gas and of electricity, and that if industry is affected, owners, shareholders and employees all suffer.
