The Sui Northern Gas Pipeline Limited (SNGPL) announced that it will distribute 100,000 Liquefied Petroleum Gas (LPG) cylinders during an expected gas shortage in the upcoming winter.
In a notice to the Pakistan Stock Exchange (PSX), the gas distribution company revealed that due to a potential gas shortfall in the forthcoming winter, the Ministry of Energy (Petroleum Division) has directed to explore all possible options to meet the energy needs of consumers, including supplying LPG cylinders.
Accordingly, the Board of Directors of SNGPL in their meeting dated September 28, 2022, has approved the project of LPG distribution with 100,000 cylinders, the notice read.
SNGPL said that the expected initial investment for the said venture is up to Rs 1,200 million.
The return on investment is not subject to the present Return on Assets (ROA) regime and will be determined as per market dynamics, said the company.
Recently, trade bodies including the Karachi Chamber of Commerce and Industry (KCCI) and the Businessmen Group (BMG) suggested Prime Minister Muhammad Shehbaz Sharif summon an emergency meeting on top priority to comprehensively discuss the overall gas demand/ supply situation besides exploring ways and means of how to efficiently deal with gas shortages during the winter season of this year.
They informed that the winter season this year is likely to be severer because of the after-effects of climate change, which would need an extraordinary plan of action for dealing with the expected gas crisis however, unfortunately, no measures have been taken so far.
Moreover, the bodies stated that there had been a constant supply shortfall of gas in the year 2021 when the general industries of Karachi had to face around 12 hours of load shedding which started on 1st January 2021 till December 2021 while the gas supply in last three months, i.e. October, November and December, was terrible.
Gas shortage has become a huge problem in Pakistan, with the condition worsening especially during the winter months, as demand for heating increases, affecting both households and industries.