ISLAMABAD – On Sunday, Energy Minister Hammad Azhar emphasised the importance of drafting Weighted Average Cost of Gas (WACOG) legislation to accommodate rising demand for the commodity, particularly during the high winter season.
In a tweet, he added, “During the winters, a demand surge develops in the local gas circuit, which cannot be addressed by imported LNG until WACOG legislation.”
The minister went on to say that the country has two gas circuits in operation, with 70% of the gas coming from domestic sources and 30% from imported LNG.
“In terms of cost and supply, both circuits are ring-fenced.” The WACOG is a pricing method that considers both domestic and imported gas costs when calculating prices.