Pakistan’s plans to open up access to LNG imports: Energy Minister Hammad Azhar
- Hammad Azhar reveals a bill is currently in parliament which seeks to expand LNG access to foreign suppliers.
- Pakistan expects a third terminal to be operational next year.
- Qatar is also looking to invest in an import facility.
Federal Minister for Energy Hammad Azhar has revealed that a bill is currently in parliament which seeks to expand liquefied natural gas (LNG) access to foreign suppliers in the local market to offset dwindling local production and meet surging demand, Bloomberg reported.
Shedding light on Pakistan’s plans to open up access to LNG imports, the minister said: “The current supplies are such that we can barely even meet our current customers. Gas is running low in Pakistan and we have to supplement it.’
However, the dilemma remains whether price-sensitive buyers in the nation, one of the fastest-growing LNG importers, will be open to paying extra for the super-chilled fuel, especially after international prices rallied to records this winter.
Azhar said: “Domestic gas production has fallen by about a fifth over the past two years and the bill that will allow LNG to be supplied to local customers is set to go to the upper house for approval.”
“As LNG is more expensive than local gas, a detailed discussion on pricing will be needed, but increases won’t be drastic,” he asserted.
It is pertinent to mention here that Pakistan has borne some of the brunt of Europe’s energy crisis as the region outbid rivals in China, Japan and South Korea and traders including Eni SpA and Gunvor Group Limited skipped cargo deliveries to the South Asian nation in recent months.
“One of the traders is expected to default on a cargo this month,” Azhar said, without giving details.
Pakistan imports LNG through two terminals and the minister expects a third site to be operational next year after it was hit by delays. Moreover, one of the top suppliers in Qatar is also looking to invest in an import facility.
Azhar added that the government is looking into “setting up its import facility by converting a portion of a state-owned liquefied petroleum gas terminal.”
“Pakistan is also using its surplus electricity as an alternative to reduce the demand for gas. The government, which has already offered incentives to use electricity rather than gas for heating, is exploring ways to encourage industries to move permanently away from gas-fired generators,” he stated.
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