Global gas crisis in the making

Global Gas

The Pakistan Economy Watch (PEW) on Thursday supported the decisions of the government to tackle gas shortages amid a global LNG crisis.

Record hike in the price of super-chilled fuel due to biting winter and other issues has prompted many global suppliers to default on their commitments and Pakistan is no exception, it said.

Following the refusal of two suppliers to provide LNG to Pakistan for February the government has sought urgent tenders for gas deliveries to fill the gap.

The government has suspended gas supply to inefficient captive power plants to cope with the gas shortages which is a right decision, said Dr Murtaza Mughal, President PEW.

He said that not only the LNG spot prices have spiked but the freight rates have also witnessed a sharp rise as rich nations are importing high quantities of gas which has added to the problems of gas importing nations.