‘Country to have 1.5bcfd LNG in system by year-end’

KARACHI: Pakistan will have 1.5 billion cubic feet per day (bcfd) of liquefied natural gas (LNG) in the system by this year-end – sufficient to halve the country’s total gas shortfall, petroleum minister said on Tuesday. 

“The first LNG terminal is already handling 600 mmcfd (million cubic feet/day) of gas, while the second terminal would be operational within the next two months,” Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said, speaking at the rebranding and remodeling event of Pakistan State Oil’s (PSO) retail store, ‘Shop Stops’. “By the end of 2017, Pakistan’s LNG imports would reach 1,500 mmcfd.” 

Abbasi said the country’s domestic gas production has been stagnant at four bcfd for the last 15 years while the demand is around seven bcfd, indicating a demand and supply gap of three bcfd.

“Pakistan has to make gas available particularly for the electricity generation sector because without gas electricity shortage cannot be overcome,” he added. The electricity shortfall in the country recently reached to 5,000 megawatts after the total demand increased to 18,000 megawatts in summer against a production of 13,000 megawatts. Petroleum minister said installed power generation capacity is increasing and 10,000 megawatts of electricity would be added into the system by next year.

He said the private sector’s LNG terminals are coming up and the pipeline infrastructure is also being enhanced to accommodate around three bcfd of gas.  “I am sure the required infrastructure would be in place by the end of 2018 and gas imports would reach three bcfd,” he added. “There would be no load-shedding after September 2016.”

Minister Abbasi said the third-party access mechanism has been put in place and anyone, including private sector’s ventures willing to import gas, could use the infrastructure.  PSO has set in motion its new convenience retail identity for its fuel stations, as part of its recent initiatives towards continuous improvement and transformation.

Sheikh Imranul Haque, managing director PSO  said the inauguration of the new identity of convenience store is a part of the company's plans to excel not only in the fuelling business but also to diversify its non-fuel ventures.