LNG import to save $2bln, says minister

KARACHI: As soon as the sustainable supply of liquefied natural gas (LNG) into the country is affected, the annual fuel savings would exceed $2 billion, Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said on Monday.

Speaking at a seminar on the “LNG outlook in Pakistan” organised by the Petroleum Institute of Pakistan (PIP) at the PSO House, Abbasi talked about the energy situation, explicating the different aspects of LNG import in Pakistan and future plans of the government.

“LNG is a game-changer and the viability of Pakistan’s energy future is directly linked to LNG. If Pakistan had committed to LNG some years back, we would not have gas crisis today.”

The minister said that LNG was the only cost-effective solution for Pakistan’s energy problems. “LNG imports in Pakistan will be linked to oil, as we are displacing oil products. LNG price is pegged at 14 percent of Brent and calculating Brent at $40 / barrel, LNG import price would be $5.6 per mmbtu.”

The minister dispelled all reasons for criticism, adding that the LNG import deals government was entering would be beneficial for the country.

He also invited viable solutions if the LNG deals were not considered feasible by anybody.

Natural gas meets 35 percent of the power generation needs, 23.8 percent of industrial requirement, 15.6 percent of fertiliser production needs, 5.4 percent requirement of CNG outlets and 18.1 percent of the household fuel consumption, he said.