KARACHI – The government has decided to distribute liquefied natural gas (LNG) likely to be imported by the end of next month to the industrial consumers located near the Port Qasim so as to avoid the leak-prone distribution system, disclosed an official.
The top priority of the government is to ensure that it has a contract for the supply of LNG by next month. If that is achieved on time, at least 200 million cubic feet per day (mmcfd) or 5% of the existing supply will be supplemented via imports by end-March.
Meanwhile, experts are concerned over the way LNG will be used in a country which loses over 9% or 350 mmcfd of gas to pipeline leakages and theft. Since the government has yet to sign a long-term contract with any LNG supplier, the landed price of gas is not known. But it will be more than double the $4 per unit – the average price at which gas is locally produced.
The official said re-gasified LNG will be pumped into large consumers such as K-Electric, Engro Polymer, Gul Ahmed Energy and manufacturing units located at Bin Qasim and Landhi industrial estates.
Engro Corporation’s subsidiary Elengy has built a terminal at the Port Qasim to handle imports. It has also hired a Floating Storage and Re-gasification Unit (FSRU), which has the ability to convert super-chilled LNG into gas. While the unit has the capacity to process 600 mmcfd of gas, the government will initially use only 200 mmcfd and double the off-take in two years.
