ISLAMABAD – The government has scrapped the Mashal project and initiated a new effort for expeditious Liquefied Natural Gas (LNG) imports through a deep sea off shore terminal. Sui Southern Gas Company Limited (SSGC) Managing Director Faiz Ullah Abbasi told reporters here the project was reinitiated according to the decision of the Economic Coordination Committee of the Cabinet (ECC). The new initiative has no link with the Mashal project. The off shore project will cost an estimated $150 million and it is planned to be implemented quickly. The import of 3.5 million tonnes of LNG is planned, an import equivalent to 500 MMCFD of gas, he said, adding that the process would be completed in the next 18 months so that the gas flows start from first quarter of 2013.
The off shore option has been approved as it was a quick option and decanting would take place in the sea and then the supplies would be made to the transmission network, he added. He asserted that a request for proposal (RFP) for mid oceanic data, tidal history for selection of suitable place in sea is to be issued next week and the process will be completed in next six weeks. During this time SSGC would complete the environment impact assessment of the project, he said adding that then the second RFG for terminal would be issued. Petroleum Secretary Imtiaz Kazi said that the some private sector companies have also shown interest in LNG imports and they would be allowed to use the gas transmission network. He said they were interested in importing 500 MMCFD of gas equivalent of LNG.
He also elaborated on future scenarios. At present, the country faces a gas constraint demand ranging from 600 MMCFD to 1.0 BCFD. Demand is projected to increase to 6.0 BCFD as compared to supply of 4.0 BCFD within the next couple of years. Even if the two gas pipelines of combined capacity of 2.3 BCFD and 3.5 million tonnes of LNG imports are made available, Pakistan is estimated to still face a gas constraint demand of 6.0 BCFD gas in 2020. Domestic supplies are estimated to decline to 2.0 BCFD by 2020, if no new significant discoveries are made.
