By Muhammad Mudassar ISLAMABAD, May 30, INP-WealthPK: The government has arranged for the purchase of four additional freights of liquified natural gas (LNG) to resolve the issue of fuel shortage in Pakistan, WealthPK has learnt. However, the higher price of LNG led to an increase in power tariff in the country. The government secured five bids from three companies for two LNG spot cargoes for the month of June, starting from the lowest price of $22.5 per Metric Million British Thermal Unit (MMBTU) to the highest one of $25.8 per MMBTU. According to Arif Habib Limited, Pakistan purchased additional LNG at $15 per MMBTU in July 2021, costing Rs14.37 per kilowatt hour (KWh) to the country. Currently, the average price of LNG is $23.2 per MMBTU, which is 54.9% higher than that of July 2021. The higher price of LNG increased electricity tariff by 54.9% and it reached Rs 22.3/KWh. In March 2022, 24% of the total electricity in Pakistan was generated with the help of coal, 19% through re-gasified liquified natural gas (RLNG), 16% through hydel resources, 15% through nuclear technology, 11% through furnace oil, 10% through gas, 3% through wind, 1% through bagasse and 1% was generated with the help of solar means. In the current situation, however, the purchase of RLNG at a higher price would cause further inflation and affect the upcoming budget. The rise in gas prices globally due to its shortage in Europe has caused record hike in rates of LNG in Asia, forcing Pakistan to pay heavily for continuation of its supply under long-term contracts. The reserves of natural gas are rapidly depleting as Pakistan has become the ninth largest LNG importer in the world during the past six years. “The government has taken a bold step to buy LNG from the international market in this difficult time to control gas shortage and ensure its supply to power plants and other consumers,” All Pakistan CNG Association Chairman Ghiyas Paracha told WealthPK. Three companies including PetroChina International Singapore, Total Energies and Vitol Bahrain emerged as technically qualified bidders for supplying LNG to Pakistan. For the spot cargo to be delivered on June 1, Petro China International Singapore offered the lowest bid of $23.97 per MMBTU. Total Energies came up with the highest bid of $25.8/MMBTU. Similarly, for delivering the cargo on June 28, Petro China International Singapore offered the lowest-ever bid of $22.5 / MMBTU. Total Energies again came up with the highest bid of $25.9 per MMBTU for the June 28 delivery and Vitol Bahrain with a bid of $22.94 per MMBTU. Contracts for both the cargoes were awarded to Petro China International Singapore at $23.97 per MMBTU and $22.5 per MMBTU, respectively. The experts said that government should sign long-term contracts with the companies for purchasing LNG to save its foreign exchange. They said that government should switch from LNG to renewable energy sources, which the country had in abundance.