LNG imports hurt local energy industry

Liquefied natural gas (LNG) imports have once again started hurting the local oil and gas industry as exploration companies have suffered a loss of $192 million in the last four months due to the addition of LNG to the transmission system. Following LNG import, gas utilities have curtailed supplies from local fields, which are operated by exploration companies. According to sources, the total curtailment of gas supply is calculated at 329 million cubic feet per day (mmcfd), resulting in a monthly loss of $48 million. Oil and gas industry officials say the impact borne in the last four months came in at $192 million. Additionally, a halt to crude oil production due to gas curtailment has caused an impact of Rs5 billion. Officials added that the value of 329 mmcfd of imported LNG was $500 million over the period of four months. They claimed that the loss faced by the national exchequer due to non-recovery of taxes stood at Rs20 billion.