Advisor to Prime Minister on Petroleum and Natural Resources Dr Asim Hussain has said that Pakistan would start import of Liquefied Natural Gas (LNG) within 12 to 18 months.
Addressing a press conference here on Wednesday, he said that in the first phase, 200 Million Cubic Feet per Day (MMCFD) LNG would be imported for which about 12 to 18 months time is required.
After retrofitting, Pro-Gas terminal in Karachi would be utilized for imported LNG, he said, adding that for completion of the plan, revenue generated through Gas Infrastructure Development Cess (GIDC) would be spent.
Asim said that the Economic Coordination Committee (ECC) of the Cabinet has cleared three LNG projects for importing one Billion Cubic Feet Gas per Day (BCFD). Under the proposed plan, he said, the government would float two tenders for 400 MMCFD LNG each on long-term basis. He said that these contracts would be signed for 15 years period and price would be reviewed after every five years. These projects would take over two years.
“Government will also import 200 MMCFD LNG on fast track basis to make spot purchase by using Progas terminal owned by Sui Southern Gas Company Limited (SSGC),” he said, adding that SNGPL and SSGC would invest money from GIDC to finance this project. SNGPL and SSGC would form a joint venture to materialize this project. He also maintained that separate pipeline network would be laid to avoid the transmission and distribution losses.
“This short term project would be completed within 12 to 18 months,” he said, adding that LNG would be given to mainly power sector that would open Letter of Credit (L/Cs) against supplies from gas utilities. He also added that ECC had approved issuing revolving guarantees by gas companies to be provided to gas suppliers. He said that LNG would be alternate fuel to furnace oil that would produce cheaper power compared to the electricity being produced through furnace-based plants.
To a question, he said that Netherland-based firm ‘4Gas’ a developer of Mashal LNG project had become bankrupt and now ‘4Gas’ Asia firm existed that could participate in tender.
“Those companies, which have secured LNG terminal licenses, would be eligible to participate in these projects,” he added.
He further said that the government had no policy to end CNG stations overnight. However, he said, these CNG stations would be phased out, as these were burden on the government. Abdul Rasheed Azad -Recorder Report-