Masses can face severe problems regarding LNG as gas crisis in Pakistan are expecting for this year.
Two LNG trading companies withdrew from an agreement with Pakistan LNG Limited (PLL). Supply of two LNG cargo to the country this month won�t be possible. It has resulted in a huge financial increase of up to 200% in International spot market.
As per reports two LNG trading companies had entered into an agreement with PLL. Italian-based ENI promised LNG cargo on November 26-27 and Singapore-based GUNVOR on November 19-20.
Back out by these LNG trading companies has shaken top officials in the energy ministry. Some are predicting the situation could lead to a strong political backlash from the public in November against the PTI government.
To discuss the issue high-level meeting is schedule for today (Monday). Meeting will be held in the Petroleum Division to review the new situation. A senior source from both the gas distribution companies releases statement.
Similarly, The meeting may decide to approach the Italian government on a war footing. It could be said to affect ENI in order to honor the 15-year agreement reached with the PLL.
LNG Trading Company has reportedly told PLL that its supplier has canceled the cargo. However, due to trade concerns and logistical issue it is not possible for it to deliver the cargo term in November.
