LNG injection to begin today: Abbasi
200mmcfd to be added; talks with Qatar on April 1, says petroleum minister.
“As per commitment, we are going to add 200mmcfd of LNG imported from Qatar which would be enhanced to 400mmcfd from December 2015,” said Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi. PHOTO: REUTERS
ISLAMABAD:
Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi on Monday announced to inject 200 million cubic feet per day (mmcfd) of LNG into the national system from today (March 31).
“As per commitment, we are going to add 200mmcfd of LNG imported from Qatar which would be enhanced to 400mmcfd from December 2015,” he said, adding that LNG has been imported by the private sector through back-to-back Letters of Credit with the Pakistan State Oil (PSO).
He also said that Pakistan and Qatar will hold talks for the initial LNG supply deal on April 1 in Doha.
“Pakistan is going to secure a better deal than other countries despite being a new buyer,” he said. “We have spoken to other countries like Indonesia and Nigeria for LNG import but Qatar was the best option for Pakistan,” he said.
The petroleum minister said earlier governments wanted bundled (terminal and supply in one deal) LNG-import projects which was the main reason for their failures to ink a deal. However, he said that the present government followed an unbundled LNG project approach and even Qatar appreciated efforts of Pakistan to setup an LNG terminal on a fast-track basis.
He said India had the capacity of dealing with 14 million tons of annual LNG import, while Pakistan’s was 2.8 million tons. He said that the IP gas pipeline project was delayed due to a sanction and gas through TAPI would not reach before 2019. Abbasi said that the second LNG ship would reach Karachi by the mid of April.
“The current power production is at 90 billion kilowatts per hour and the use of LNG would add 10 billion additional KWs per hour,” he said, explaining further that power plants with 300MW to 350 MW generation capacities were lying idle and LNG would help operate them.
He said that gas-based power plants were the most efficient, operating at 61% capacity. The other cheaper source was imported coal but there were several issues in its transportation. “By use of imported LNG, country would save $300 million per annum compared to HSD and LSFO,” said Abbasi.
Increase in gas prices
Meanwhile, he added that a plan for the hike in gas prices would be referred to the Council of Common Interests (CCI) to take provinces on board. He said that the government did not want to increase the gas price of domestic, power and the fertiliser sector.
Published in The Express Tribune, March 31st, 2015.
Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi on Monday announced to inject 200 million cubic feet per day (mmcfd) of LNG into the national system from today (March 31).
“As per commitment, we are going to add 200mmcfd of LNG imported from Qatar which would be enhanced to 400mmcfd from December 2015,” he said, adding that LNG has been imported by the private sector through back-to-back Letters of Credit with the Pakistan State Oil (PSO).
He also said that Pakistan and Qatar will hold talks for the initial LNG supply deal on April 1 in Doha.
“Pakistan is going to secure a better deal than other countries despite being a new buyer,” he said. “We have spoken to other countries like Indonesia and Nigeria for LNG import but Qatar was the best option for Pakistan,” he said.
The petroleum minister said earlier governments wanted bundled (terminal and supply in one deal) LNG-import projects which was the main reason for their failures to ink a deal. However, he said that the present government followed an unbundled LNG project approach and even Qatar appreciated efforts of Pakistan to setup an LNG terminal on a fast-track basis.
He said India had the capacity of dealing with 14 million tons of annual LNG import, while Pakistan’s was 2.8 million tons. He said that the IP gas pipeline project was delayed due to a sanction and gas through TAPI would not reach before 2019. Abbasi said that the second LNG ship would reach Karachi by the mid of April.
“The current power production is at 90 billion kilowatts per hour and the use of LNG would add 10 billion additional KWs per hour,” he said, explaining further that power plants with 300MW to 350 MW generation capacities were lying idle and LNG would help operate them.
He said that gas-based power plants were the most efficient, operating at 61% capacity. The other cheaper source was imported coal but there were several issues in its transportation. “By use of imported LNG, country would save $300 million per annum compared to HSD and LSFO,” said Abbasi.
Increase in gas prices
Meanwhile, he added that a plan for the hike in gas prices would be referred to the Council of Common Interests (CCI) to take provinces on board. He said that the government did not want to increase the gas price of domestic, power and the fertiliser sector.
Published in The Express Tribune, March 31st, 2015.