ISLAMABAD: The Bin Qasim Liquefied Natural Gas (LNG) terminal will start supply of imported gas to consumers by March 31, a senior government official said.
The official told this correspondent on condition of anonymity that agreement for LNG purchase from Qatar, Malaysia, Brunei and China is expected by March. He said the price of LNG will be less than $8 per mmbtu in Asia which will bring down the cost of power production from the IPPs by up to 20 percent.
The official said Pakistan will make an agreement for LNG import for five to 15 years. Pakistan will purchase about three million tons LNG per year which will cost $1.5 billion according to current estimates. This will save Rs300 million for Pakistan. The import of LNG will enhance transmission in the system by 400 million cubic feet, while the terminal has the capacity to further enhance the transmission by 49 percent.
The under construction terminal will have more capacity than Sui field. Bin Qasim terminal has been completed in the record time of 11 months and it will convert LNG to natural gas on lowest rates.
The official said the LNG terminal will help reduce electricity loadshedding and enhance supply to the CNG stations. Prime Minister Nawaz Sharif will inaugurate the LNG terminal in last week of March.