ISLAMABAD: The Pakistan State Oil (PSO) has so far imported around 367,919,495 Million British Thermal Unit (MMBTU) of Liquefied Natural Gas (LNG) to meet the country’s growing energy needs.
“The commodity is being imported from Qatar under the Government to Government arrangement. However, the PSO has also received LNG from different sources including Nigeria, United Kingdom, Spain, Equatorial Guinea, Australia, Trinidad and Netherlands through competitive bidding,” official sources told APP.
Answering a question, they informed that as per Article 3.1 (d) of LNG Policy 2011 no licence was required for import of the LNG. However, licence is mandatory for marketing, filling, transportation and distribution of LNG under the provision of LNG Rules 2007 of OGRA, they added.
Replying to another question, the sources said at present, five cargoes carrying around 140,000 cubic meters LNG, which translated into 500 million cubic feet per day (mmcfd) gas, were being imported from Qatar on a monthly basis.
“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 arrangement which is not origin specific. Thus a total of 4.5 MTPA LNG is being imported currently in the country,” the sources said.
Answering a question, they said the PSO signed a 15-year agreement with Qatargas Company in February 2016, under the government to government arrangement.
The deal doing wonders when the imported gas fed industries, CNG stations, gas-fired power generation plants and fertilizer sector, giving an impetus to economic activities in the country.
“The country had no option other than to import gas whether it is LNG or through Iran-Pakistan and Turkmenistan-Afghanistan-India gas pipeline projects as the country’s existing reserves are depleting and there is no major find since long,” the sources said.
They expressed confidence that the LNG import would prove to be a game-changer for Pakistan because it was considered an essential part of the energy mix needs of emerging economies.
The world is turning towards LNG and emerging economies such as China, Korea, Japan, India, Thailand, Indonesia, European Union, and Brazil ensure that LNG remains part of their energy mix requirements.
Japan is importing around 80 million tons of LNG every year and India 15 MTPA due to the commodity’s low price and efficiency as compared to other fuels.
Pakistan’s gas supply-demand gap has reached 4 Billion Cubic Feet per Day (BCFD) as total unconstrained gas demand of the country is 8 BCFD against total supply of 4 BCFD. Needless to say in winter the demand rapidly increases.
They said LNG was the cheapest alternative fuel and the only instant available remedy to meet the country’s energy needs when the existing natural gas reserves were diminishing.
The LNG greatly helped in meeting the country’s energy requirements as all gas-based power generation plants are now functioning fully, over 1200 CNG stations restarted their operations, industrial and fertilizer sectors getting uninterrupted supply, which is not less than any miracle.
Before LNG import, the sources said, Pakistan was importing up to 2 million tons of urea fertilizer to meet deficit due to shortage of gas and now it was exporting over 700,000 tons of fertilizer and entire power generation sector was getting full gas supply.
Replying to another question, the sources said, Pakistan was building deeper
