Pakistan faces a risk of GNL of Glut, warns the minister Blogging Sole

A liquefied natural gas tanker (LNG) is pulled to a thermal power plant in Futsu, east of Tokyo, Japan on November 13, 2017 - Reuters
A liquefied natural gas tanker (LNG) is pulled to a thermal power plant in Futsu, east of Tokyo, Japan on November 13, 2017 – Reuters
  • Perviz Malik invites nominations based on merit to the energy committee.
  • The legal use of oil in Balutchistan increased after closing the Iranian border: Malik.
  • Govt reflects on raw oil imports from us while WTI becomes profitable.

Islamabad: Federal Minister for Petroleum Perviz Malik warned that Pakistan could be confronted with a re -liquefied re -Malfi (RLNG) surplus re -liquefied gas if the electricity sector does not increase its engaged volumes, affirming that the government explored the options – including the diversion of the offer – to prevent stockpiles ,, The news reported.

“There will be no surplus RLNG if the energy sector takes its committed volume,” said Malik, highlighting the urgent need for better coordination through the energy chain.

He also called for a composition based on the merit of the Cabinet’s Energy Commission (CCOE), urging the inclusion of finance, power and oil ministries. “The appointments to the cabinet committee on energy should be based on merit rather than AIM or not to love,” he said.

Commenting on the potential imports of American crude oil, Malik said: “We will turn to the importation of an American crude with the open mind”, noting that the WTI reference was cheaper than the other raw grades (Brent).

Malik revealed that the closure of the Pakistani border with Iran in the middle of the regional tensions had led to an increase in legal consumption of fuel in Balutchistan – an indicator revealing the smuggling of pass. “In June 2024, the Balutchistan oil supply was 8,500 tonnes for the whole month. After closing the border in June 2025, this same volume was consumed in just one week,” he said, adding Ogra to provide data on Iranian oil smuggling.

The Minister also said that a high -level ministerial committee evaluated the options concerning potential derogations for oil and gas imports from Iran in the midst of current tensions. He added that Pakistan and Iran had been engaged in arbitration procedures in Paris on the Iran-Pakistan (IP) gas pipeline (IP) for a long time.

On the LNG front, Malik admitted that the second LNG contract with Qatar had created complications. “If there was no LNG contract, we may not face the current defect situation in the gas sector,” he said, noting that the government had been forced to suspend 300 mmcfd of local gas production.

Defending the recent increase in fixed gas costs, Malik cited financial constraints. “Subsidies of 150 billion rupes to protected gas consumers in more than 2550 billion RLNG diversion of power to national consumers have forced the government to increase fixed charges,” he said. “We are in the IMF program which wants a zero deficit.”

He supported the idea of ​​a unified energy ministry and underlined the role of the oil division in decision -making.

On the geopolitical front, Malik said that Pakistan had invited China, Russia and the United States to invest in mining. “We offer equal chances,” he said, rejecting any affirmation of favoritism.

Regarding refinery improvements, he criticized the taxation of regulated margins and zero tax policies, saying that they compromise $ 6 billion in planned investment. “An indulgent burden should not be put on refineries if the government wants them to invest 5 to 6 billion dollars,” he warned.

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