2 Liquefied Natural Gas terminals are currently operating in Pakistan. It is hopeful that the government will operationalize the 3rd LNG terminal facility in Pakistan by next year.
Federal Minister for Energy Hammad Azhar has said in an interview with a news media.
He said that the current two LNG terminals are working to meet the ever-growing energy needs of consumers and 3rd LNG terminal will become operational next year in Pakistan.
Moreover, According to Federal Minister for Energy Hammad Azhar:
“Qatar is keen to invest in establishing an import LNG facility in Pakistan. The government is trying to set up its own import facility. The government may convert a portion of a state-owned liquefied petroleum gas terminal to do so.”
According to the Federal Minister for Energy:
“The government of Pakistan is pursuing a strategy for investment in the oil and gas sector. Under govt’s ease-of-doing-business-plan, they are strategizing to achieve active participation of private entrepreneurs. This will help the country meet the increasing demand for energy in the country.”
Legislation to Provide Foreign LNG to Domestic Consumers of Pakistan
“The government has made law amendments to expand access to foreign supplies to domestic consumers. Foreign supplies represent about 70% of winter demand of the country. The ammendment is set to go to the upper house for approval,” said Federal Energy Minister.
Furthermore, Federal Energy Minister Hammad Azhar said:
“The current supplies can barely even meet our current customers. Domestic gas production has decreased 20% in the past 2 years. Gas is running low in Pakistan and we need to give it a boost.”
He said that the government will need to discuss details of pricing as LNG is more expensive than local gas. But he also assured that the increase in prices will not be “extreme”.
Exploring Parmanent Alternatives of LNG
Currently, Pakistan is also using its surplus electricity generated as an alternative to reduce the demand for gas in the country, said Hammad.
For which purpose, Federal Energy Hammad Azhar informed that the government has already offered incentives to use electricity rather than gas for heating.
He also said that the government is exploring ways to encourage industries to move permanently away from gas-fired generators.
