LNG imports from Qatar touch 140,000 cubic metres per month

Resource considered a crucial part of long-term energy plan for the country

ISLAMABAD: The government is importing around 500 million cubic feet per day (mmcfd) liquefied natural gas (LNG) every month to meet energy needs of the country, official sources in Ministry of Energy’s Petroleum Division said on Friday.

At present, five cargoes with a combined capacity of around 140,000 cubic metres LNG or 500 mmcfd gas is being imported from Qatar on a monthly basis, they told APP.

“This, on an annual basis, is around 3.75 million ton per annum (MTPA) whereas another 0.75 MTPA LNG is imported through term tender arrangements which are not origin specific,” sources said, adding that a total of 4.5 MTPA LNG is being currently imported in the country.”

Answering a question, they said that the state-owned Pakistan State Oil (PSO) signed a15-year agreement with Qatar in February 2016 for LNG imports with 76 LNG cargoes bought from Qatargas so far.

The agreement was signed under a government-to-government arrangement between PSO and Qatargas. The LNG deal started doing wonders when the imported gas fed industries, CNG stations, gas-fired power generation plants and fertiliser sector, giving an impetus to economic activities in the country.

“The country had no option other than to import gas whether in the form of LNG or through Iran-Pakistan and Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline projects, since the country’s existing reserves are depleting and there has not been a major discovery since a long time,” the sources said.

They expressed confidence that LNG imports will prove to be a game-changer for Pakistan because it is considered an essential part of the energy mix needs of most emerging economies.

“The world is turning towards LNG and emerging and developed economies such as China, South Korea, Japan, India, Thailand, Indonesia, European Union, and Brazil ensure that LNG remains part of their energy mix requirements,” they claimed.

“Japan is importing 80 million tons of LNG every year (MTPA) and India 15 MTPA due to the commodity’s low price and higher efficiency as compared to other fuels.” Pakistan’s gas supply-demand gap has reached 4 billion cubic feet per day (BCFD), since the total unconstrained gas demand of the country is 8 BCFD against the current total supply of 4 BCFD.

Published in The Express Tribune, September 23^rd, 2017.

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