- Minister says using LNG instead of oil for power generation will save Rs 200 billion annually
Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi Thursday said imported Liquefied Natural Gas (LNG) would not only help meet the country’s energy needs, but would also save $1 billion annually which can be used in the power, fertiliser and CNG sectors.
Addressing a press conference, Abbasi said that the country had limited gas reserves, which cannot meet the demand from various industries. He said that LNG imports were carried out in a transparent manner, which was evident from the fact that the LNG terminal started working within 11 months after the contract was signed. It was a 15-year contract and its price was only 66 cent, which is the lowest in the world, he added.
Abbasi said that so far 10 ships carrying LNG had arrived, and in next 12 months, the number of ships will rise to 30. The use of LNG by the fertiliser sector will reduce the commodity’s import, he added.
The minister said that 1800 MW of electricity would be generated through LNG, as many power plants have been closed due to fuel shortage. Power generation through use of LNG will rise to 3,600 MW by 2017.
He said the use of LNG instead of oil for power generation would save Rs 200 billion per annum. “LNG will be a game changer in the energy sector,” he added.
The minister said the total LNG demand of the country was 10 million tonnes per annum. The price was only negotiated with Qatar and the exact price would be revealed once the contract is signed, he added.
He said 15 million tonnes of LNG would be imported in the next three years, for which more terminals will be set up to save $200 million annually.
He said the Oil and Gas Regulatory Authority had not yet determined the LNG price due to litigation. However, Pakistan State Oil would issue a price notification this month. He said the private sector could also import LNG according to their demands and contracts.