Pakistan Plans to Import 4.5 mt of LNG in 2016-17

Pakistan will most likely import 4.5 million tonne of LNG during 2016-17.

Ministry of Planning, Development and Reforms is undertaking fast-tracking projects to overcome natural gas shortage, Business Recorder, a local financial daily reported. As part of that endeavour, Pakistan LNG Terminal Company Limited (PLTCL) is overseeing the process of establishing country’s second LNG import terminal. The bids for second terminal were invited by PLTCL and are under evaluation by the company.The emphasis is on creating sufficient infrastructure to ease the process of importing LNG. Earlier this year, Pakistan signed a 15-year LNG import deal with Qatar with initial quantities of 2.75 million tonne for the first year and 3.75 MTPA by 2017.

Another major project being implemented is Gwadar-Nawabshah LNG terminal and pipeline project. As per the plan, a 700-km pipeline will be built along with LNG terminal with capacity of 600 MMCFD. A framework agreement has been signed between the National Energy Administration (NEA), China and Ministry of Petroleum and Natural Resources. The Gwadar-Nawabshah LNG terminal and pipeline project is expected to be complete completed by 2018, Business Recorder reported.

The South Asian nation has been facing severe gas shortage since last few years. To augment energy supplies, Pakistan has stepped up effort to attract foreign as well as domestic investment, especially in the oil, gas and LNG sectors.

Engro Corp currently operates Pakistan’s first FSRU through Engro Elengy Terminal Private Limited (EETPL). The LNG terminal, utilising Excelerate's technology, is first of its type for the country and has been built at a cost of $125 million. The terminal has peak capacity for regasification of up to 690 mmcfd of LNG which provides for surplus capacity setup. The terminal received its first shipment in March 2015.

Earlier this month, Express Tribune reported that terminal, which is located at Port Qasim, has so far regasified and pumped over 77 billion cubic feet of gas (bcf) into the national gas distribution network. According to Amir Mahmud, terminal manager of Engro Elengy Terminal Limited, a total of 1.7 million tons of LNG has been imported so far.