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Pakistan to import more LNG in next three to five years

2019/04/05 12:00

By Kamlesh Trivedi

 

A gap between the demand for natural gas and the supply available in Pakistan is expected to increase drastically in the coming two to three years. At a recently organised LNG conference, Pakistan LNG officials had stated that LNG imports by Pakistan could touch as high as 25 to 30mil mt/year in another three to five years’ time.

Pakistan’s state-owned Pakistan LNG Ltd (PLL) had imported around 7.00mil mt/year LNG in 2018 which, according to PLL’s estimates, could rise to around 15.00mil mt/year in 2019 as Pakistan is expected to increase more LNG through its second 170,000cbm floating storage regasification unit (FSRU) “BW Integrity”. Underutilization of the FSRU “BW Integrity” was a major cause of concern for Pakistan during 2018 and the present government had decided to import more LNG from Qatargas. Accordingly, government to government level talks were held during January and February of 2019 and finally late in March, the Pakistan government had decided to import 200mil cubic feet per day more LNG from Qatar in addition to its existing contract for 15 years for 3.75mil mt/year of long-term LNG. Pakistan also has additional import contracts with ENI and trading major Gunvor.

Most of the long-term LNG from Qatargas is currently imported through the first FSRU, the 150,900cbm “Exquisite” installed by Excelerate Energy of the US. The second FSRU was used mainly to import spot and short-term LNG contracted by PLL. With clearance from the Pakistan government for an additional volume of LNG from Qatar, more LNG is expected to be imported through the second FSRU “BW Integrity” 2019 onward.

The Pakistan government is also considering to allow private sector bulk buyers to import LNG on their own. Strong lobbying by industrial consumers has forced the government to consider setting up a third FSRU based LNG import terminal in Pakistan. The proposed third terminal may take some time to materialize but LNG demand is expected to remain strong in Pakistan and it is expected to increase dramatically as domestic gas supply continues to dwindle.

 

India : Energy Desk  Kamlesh Trivedi  +91-98795-50717
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