The Oil and Gas Development Company (OGDC) on Wednesday indicated it is preparing to raise output of natural gas to offset the supply disruptions caused by the ongoing conflict in the Middle East.
According to the Reuters news agency, OGDC aims to raise natural gas output by 5% to 865 million cubic feet per day. It also plans to boost crude oil production by 14% to 40,000 barrels per day to make up for the losses incurred due to Iran’s blockade of the Strait of Hormuz.
OGDCL Managing Director Ahmed Lak emphasized potential further increases with new discoveries. “This potential can be fully monetized subject to offtake by the buyers,” he told Reuters.
The news agency said Islamabad was also considering reducing LNG terminal regasification due to Qatar’s decision to halt production. Doha declared force majeure on gas exports on Wednesday, raising concerns over shortages in the global gas market, as the country supplies 20% of global LNG.
Reportedly, Qatar has no plans to restart operations for at least two weeks. Even once the decision to resume operations is taken, it would take up to two weeks to reach full capacity.
Meanwhile, the Oil and Gas Regulatory Authority (OGRA) has directed all LPG marketing companies to submit daily details of their LPG stocks amid concerns over a looming fuel crisis. The regulator has directed the reports on LPG available at storage and filling plants by 9 a.m. daily, as well as any fuel in transit or loaded on vehicles.