Lobbies at work to turn energy mix in their favour
ISLAMABAD: The present government has been largely focused on imported gas and coal rather than preferring domestic resources for power generation.
Prime Minister Shahid Khaqan Abbasi, who was earlier minister of petroleum, is the main proponent of consuming imported liquefied natural gas (LNG) in power generation and has shunned expensive fuels like high-speed diesel and furnace oil.
Earlier, the furnace oil lobby was very powerful and all power plants in the private sector were running on oil. Major oil producers like Saudi Arabia, the United Arab Emirates (UAE) and Kuwait had captured and dominated supplies for power production in Pakistan.
Now, imported gas and coal have taken the place of expensive furnace oil in energy production and have taken hold of the market. Pakistan has signed a 15-year agreement with major LNG producer Qatar for uninterrupted supplies over the long run.
Published in The Express Tribune, 25th April, 2018