Imports from Qatar: Second LNG shipment to arrive next week

First consignment of 141,000 cubic metres being injected into SSGC network


APP March 02, 2016
PHOTO: AFP

ISLAMABAD: Under an agreement between Pakistan and Qatar, the second shipment of liquefied natural gas (LNG) is scheduled to arrive at Port Qasim on March 8.

The first consignment carrying approximately 141,000 cubic metres docked at the LNG terminal in Karachi on Tuesday from where it was being injected into the network of Sui Southern Gas Company.

According to officials in the Ministry of Petroleum and Natural Resources, “the import of LNG is the cheapest and instant remedy for the energy-starved country, since its major gas reserves are fast depleting and the supply-demand gap is widening.”

LNG is considered an essential part of meeting the energy needs of emerging economies and the world is turning towards it.

According to them, emerging and big economies such as China, South Korea and Japan are ensuring that LNG remains part of their energy mix. India imports 15 million tons of LNG per annum while Japan imports 80 million tons.

Pakistan has signed a 15-year agreement with Qatar for import of up to 3.75 million tons per year, a move which has been appreciated by the business community.

The country’s total gas production is around 4 billion cubic feet per day (bcfd), while the demand stands at 6 bcfd. The officials believe the LNG deal will add about 2,000 megawatts of gas-fired power capacity and improve production at fertiliser plants.

They pointed out that the LNG price agreed was 13.37% of Brent crude price and is cheaper than the gas that would be imported through the Turkmenistan-Afghanistan-Pakistan-India (Tapi) gas pipeline and the gas produced in Pakistan.

The LNG agreement is believed to save Pakistan Rs100 billion per year and help meet 25% of its energy needs.

The LNG-based power production will cost 9.5 cents per kilowatt-hour (kWh) compared to energy produced through diesel that costs approximately 18 cents per kWh. 

Published in The Express Tribune, March 3rd, 2016.

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