Bahria Foundation applies for LNG terminal licence

ISLAMABAD: The Bahria Foundation has applied to the Oil and Gas Regulatory Authority (Ogra) for the licence to build Liquefied Natural Gas (LNG) terminal, official sources in the Ministry of Petroleum and Natural Resources said.

Last year in March, the country's first LNG terminal was built by Engro Elengy Terminal Limited (EETL) in the shortest period of 11 months, the sources said.

Around 200mmcfd (million cubic feet per day) LNG was being injected in the national system through the terminal to meet the existing energy demand.

Another two LNG terminals will be established in Sindh and Gwadar and once they complete, the country’s gas shortage will be overcome, they told APP.

Commenting on the fast-track completion of the first terminal, the sources said that it has been completed in 335 days at a cost of Rs135 million, which is a record in the world’s history.  Normally, they said, a terminal takes around three to four years to complete and become operational, but it was the hallmark of the present government to set up the country’s first LNG terminal in just 11 months.

The official sources termed setting up of terminals a milestone in the history of the country and expressed confidence that with increased LNG import there would be a significant decrease in electricity load-shedding, as special focus is being given to overcome the power shortage.  New LNG power plants were being established because LNG is 50 percent cheaper as compared to the diesel power generation plants and it would save over Rs100 billion annually.

The sources said importing LNG from Qatar at the price of $4.78 per mmBtu was the cheapest of its kind in South Asia, besides it would help meet the country’s energy needs by 25 percent.