LNG imports from Qatar reach 500mmcfd/year

ISLAMABAD: Pakistan is importing around 500 mmcfd Liquefied Natural Gas (LNG) from Qatar every month to meet its energy requirements, sources said on Friday.

“Presently, five cargoes with a capacity of around 140,000 cubic meters LNG, which translates into 500 million cubic feet per day (mmcfd) gas, are being imported from Qatar on a monthly basis,” officials in the petroleum division of ministry of energy told Associated Press of Pakistan (APP).

"This, on an annual basis, is around 3.75 million ton per annum (MTPA) LNG, whereas another 0.75 MTPA LNG is being imported through term tender arrangement, which is not origin specific. Thus a total of 4.5 MTPA LNG is arriving in the country currently."

Answering a question, the source said that Pakistan State Oil (PSO) has signed a 15-year agreement with Qatar in February 2016 and so far 76 LNG cargoes had been imported from Qatargas.

"The country had no option other than to import natural gas whether it is LNG or simple gas as the country's existing reserves are depleting and there has not been a major find since long," the official said.

The official was confident that the LNG import would prove to be a game-changer for Pakistan because it was considered an essential part of the energy mix needs of emerging economies.

The world is turning towards the LNG and emerging economies such as China, Korea, Japan, India, Thailand, Indonesia, European Union, and Brazil are now ensuring that it remains a part of their energy mix. For example, Japan is importing around 80 MTPA LNG and India 15 MTPA due to the commodity's low price and efficiency compared to other fuels.

It must be noted that Pakistan's gas supply-demand gap has reached 4 billion Cubic Feet per Day (BCFD) as total unconstrained gas demand of the country is 8 BCFD against total supply of 4 BCFD. Needless to say that in winter the demand skyrockets.

To another question, the petroleum division functionary said the LNG was the cheapest alternative fuel and the only instantly available remedy to meet the country's energy needs amid diminishing reserves.

"The LNG is available to consumers at a cheaper rate than LPG, while the price of regasified LNG (RLNG) will still be lower than the prices of other fuels,” the official said.

He continued that the price of the LNG for consumers is Rs850 per MMBTU as compared to home delivered price of the LPG at Rs2,000 per MMBTU and domestically produced natural gas is priced up to Rs700 per MMBTU.

The LNG greatly helped in meeting the country's energy requirements as all gas-based power generation plants are now functioning fully. Over 1200 CNG stations restarted their operations, while production in industrial and fertiliser sectors is in full swing.

Before the LNG import, the source said, Pakistan was importing up to 2 million tons of urea to meet the deficit due to shortage of gas and now it was exporting over 500,000 tons of fertiliser and entire power generation sector is getting full gas supply, while Nandipur power plant had also been converted on the RLNG. “Three new power plants with a capacity of 3600 megawatts are running on LNG,” the official added.

Replying to another query, the official said, Pakistan was building deeper relations with many countries through oil and gas deals on a government-to-government basis after the successful model of oil imports from Kuwait. “In this context, LNG import deals with various countries, including China, Turkey, Russia, Malaysia, Indonesia and Oman were being negotiated,” the official said.