ISLAMABAD: Federal Minister for Petroleum Shahid Khaqan Abbasi has said that the electricity generated through liquefied natural gas (LNG) would be 50 per cent cheaper, refuting the impression that imported LNG was more expensive than diesel to produce electricity.
The minister, addressing a press briefing, said that the government had not barred any sector from importing their own LNG, adding that the CNG sector can also import LNG.
On the issue of LNG deal with Qatar, Minister said that the deal had not been finalised yet but it will be done. There were few requirements left to be fulfilled that will not take much time.
About the price he said that it has not yet been decided. But the already imported LNG by the fertilizer sector cost less than $8 per Million British thermal units. The two ships were imported by the private sector and the price was almost the same, minister told.
Currently PSO, Sui Southern and Sui Northern Gas Pipelines have to decide about their arrangement. Furthermore, payment mechanism and Letter of Credits (LCs) have to be opened. There was another requirement that was port inspection by the Qatar and once these things are done, the deal will be finalised, minister said. He said that with the use of LNG for power generation, country could save at least $1 billion per year.
