ISLAMABAD: Minister for Energy Hammad Azhar has underlined the need for crafting Weighted Average Cost of Gas (WACOG) legislation to meet increased demand of the commodity, especially in peak winter season.

“During winters a demand spike occurs in the local gas circuit, which cannot be plugged by imported LNG [liquefied natural gas] till WACOG legislation,” he said in a tweet.

Elaborating, the minister said, the country has two gas circuits in operation, under which 70 per cent was based on local gas and 30 per cent on imported liquefied natural gas.

“Both circuits are ring-fenced in pricing and supply.” The WACOG is the pricing mechanism that takes into account the blended costs of both indigenous and imported gas.

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