ISLAMABAD: Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi Thursday said imported LNG would not only help meet the country’s energy needs but also save $1 billion annually for being used in power, fertilizer and CNG sectors.
Addressing a press conference here, he said the past several governments had made efforts to import LNG but they failed. The credit went to the present government which made it possible in 20 months after coming to power.
He said the country had limited gas reserves, which could not meet the demand of various industries. He said the process for LNG import was carried out in a transparent manner, which was evident from the fact that the LNG terminal started working within 11 months after signing of the contract. It was a 15-year contract and its price was only 66 cent which was the lowest in the world.
He said so far 10 ships carrying LNG had arrived and in next 12 months, the number of ships would rise to 30. The use of LNG by the fertilizer sector would reduce commodity’s import, he added.
The minister said 1800 MW electricity would be generated by use of LNG as many power plants were closed due to fuel shortage. The power generation through use of LNG would raise to 3600 MW by 2017.
He said the use of LNG instead of oil for power generation would save Rs 200 billion per annum. “LNG will be a game changer in the energy sector,” he added.
He said the oil mafia did not want efficient power generation in the country and they even tried to bribe him to stop working for LNG import. The minister said the total LNG demand of the country was 10 million tonnes per annum. The contract’s details would be shared with the people. The LNG price was only negotiated with Qatar and the exact price would be revealed once the contract was singed, he added. He said 15 million tonne LNG would be imported in next three years for which more terminals would be set up to save $200 million annually.
He said the negotiated LNG price was less than that of the gas to be imported through pipelines from Iran and Turkemistan.
He said the Oil and Gas Regulatory Authority had not yet determined the LNG price due to litigation. However, the Pakistan State Oil would issue a price notification this month.
He said the private sector could also import LNG according to their demands and contracts.
Sep 28, 2016 0
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