New gas pipeline to be built for uninterrupted LNG supply

The report said the pipeline was essential to smooth, uninterrupted supply of gas to consumers at affordable prices


Zaigham Naqvi July 12, 2021

ISLAMABAD:

Two new terminals will have to be built to increase the Liquefied natural gas (LNG) supply, a report by the petroleum division presented to Prime Minister Imran Khan has said.

The gas pipeline will be constructed as soon as possible in accordance with the directives issued by the premier. Local companies will also be involved in its construction.

The report, submitted by Special Assistant Tabish Gohar, said the pipeline was essential to the smooth and uninterrupted supply of gas to consumers at affordable prices.

The new LNG terminal operators will sign agreements on a take-or-pay basis regarding the allocation of pipeline capacity following the model of existing LNG terminals.

Read New LNG deals sought on take-or-pay basis

Under the new government strategy to reform the gas sector, the SAPM said excess capacity of 300 Million Cubic Feet per Day (MMCFD) gas of the two existing Re-gasified Liquefied Natural Gas (RLNG) terminals and additional LNG cargoes would be utilized to bridge the demand and supply gap, especially in the next winter season.

In addition, LPG will be used as an alternative fuel to reduce the load on natural gas, the report added.
It was decided that the LNG storage infrastructure will be built by 2030.

Earlier, on Saturday, it had emerged that the Petroleum Division took another U-turn in the new draft of the LPG Policy 2021, as it proposed local LPG price of around $80 over the international price.

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