RLNG enables Pakistan to save $2-3 billion on power generation

ISLAMABAD: With the import of LNG, Pakistan has so far benefited by $2-3 billion through replacing furnace oil and diesel with imported gas as fuel for power generation.

At present LNG of 1-1.2 billion cubic feet per day is being injected into Pakistan’s economy which is playing a pivotal role in catering to the various sectors of the economy.

Top sources in the Petroleum Division said that Pakistan LNG Limited under Managing Director Adnan Gilani has been able to put Pakistan on the world LNG map and has developed PLL into a world class company literally from scratch. PLL has even managed to obtain LNG prices cheaper by 18-20 percent than the cargoes being imported by Pakistan State Oil and rates 25-30 percent cheaper than the other countries which are currently importing LNG.

Under Mr Gilani, PLL has been able to achieve the lowest LNG prices the world over and if this process continues at these or better prices the additional savings will be $300-400 million annually or $3.5-4 billion over the next decade. This is in addition to the annual savings of $2-3 billion annually by displacing oil imports and will further bring down average LNG prices in Pakistan.

Pakistan has so far attracted over $6 billion in developing LNG infrastructure and the same amount will also be invested in laying down 1 more RLNG specific pipeline, one more RLNG power plant at Trimmu and four more LNG terminals. So in all, from establishing LNG terminals to pipeline and powerhouses a massive investment of $8-10 billion will be made in the country through this initiative.

Highlighting the importance of LNG, the official said that Pakistan is currently producing 20 GWs plus electricity on average, and out of which, 7-8 GW electricity can be generated by LNG, and power outages have been reduced from an average of 8-12 hours per day to less than two hours.

On RLNG, the power plants with 62 percent efficiency, electricity is being generated at an average cost of Rs7-8 per unit which is 50 percent less than the cost electricity being generated on furnace oil which hover around 12-13 per unit on average.

On RLNG, the power plants with 62 percent efficiency, electricity is being generated at an average cost of Rs7-8 per unit which is 50 percent less than the cost electricity being generated on furnace oil which hover around 12-13 per unit on average.