Pakistan would spend Rs. 127 billion on a Strategic Underground Gas Storage (SUGS). By June 2022, a bankable feasibility study will be completed in this regard.
The bankable feasibility study for the development of Strategic Underground gas storage would cost approximately Rs. 1.848 billion, with the goal of creating a framework for the construction of strategic natural gas storage.
According to the official, the consultant is preparing a bankable feasibility study by carrying out additional work and studies related to detailed engineering design and ESIA-II transaction advisor to plan and structure the project’s commercial and financial anatomy related contractual framework and financing.
According to the source, the bankable feasibility study’s cost comprises a rupee component of Rs. 250 million as well as a foreign exchange component of Rs. 1,598 million.
Underground storage would be an important factor of a fully integrated and continuous gas supply system. Pakistan’s dependency on imported LNG is growing by the day due to depleting natural gas sources, yet the government cannot afford a slight disruption in the supply of imported gas due to a lack of storage capacity. As a result, an expenditure of around Rs. 127 billion is planned to create local Strategic Underground Gas Storage, according to the official.
When asked where the financing for the massive investment would come from, the official replied it would come from the Gas Infrastructure Development Cess, PSDP, and G2G agreement.
