[ad_1]
The Planning Fee is suggesting a broad shift from liquefied petroleum gasoline (LPG) to liquefied pure gasoline (LNG), which is comparatively cheaper, and in addition working to operationalise gasoline pipelines from Iran and Turkmenistan. Nonetheless, the latest coverage recommendation from the Fee’s power wing additionally suggests an extra hike in home gasoline costs to take away or cut back the efficient subsidy on imported LNG. The Vitality Planning and Useful resource Centre additionally believes increased costs will cut back demand, though this appears unlikely since gasoline demand is comparatively rigid for home customers.
One efficient however probably controversial demand discount measure is a suggestion to cease gasoline provide to captive energy vegetation. Whereas this might clearly minimize gasoline necessities, it will not go down nicely with firms which have spent tens of millions and billions organising vegetation to compensate for what’s, on the finish of the day, the federal government’s historic failure to offer dependable energy provide to industries that rely upon it. One other effectivity suggestion is to make use of outdated gasoline fields as storage depots for imported LNG. A 3rd floating LNG regasification terminal can be urged — the primary two are privately held and function close to Port Qasim. The Fee additionally says that terminal capability will likely be reached in 2025, and a brand new terminal should be made operational earlier than then to keep away from provide interruptions.
Learn Distinctive LNG settlement to be signed
However none of those measures goes to compensate for the huge distinction between home gasoline costs and the value of imported LNG, which might be as a lot as six instances increased throughout seasonal peaks and is usually two to a few instances as excessive as the value of home gasoline. Whereas LNG continues to be about 50% cheaper than LPG, the precedence must be gasoline pipelines, that are nonetheless the one actually cost-effective answer for home gasoline wants. Expediting work — and cooperation — on the Turkmenistan-Afghanistan-Pakistan-India Pipeline and discovering a sanctions workaround for the Iran pipeline must be high priorities.
Printed in The Categorical Tribune, August 23rd, 2023.
Like Opinion & Editorial on Fb, comply with @ETOpEd on Twitter to obtain all updates on all our each day items.
[ad_2]
Source link
