Pakistan weighs LNG imports from Saudi, Malaysia

ISLAMABAD: The government is weighing its options as a number of producers are ready to supply liquefied natural gas (LNG) to Pakistan at rates comparatively lower than its current imports from Qatar, petroleum minister said on Tuesday.

“Saudi Arabia and Malaysia have offered to export LNG at cheaper rates, the government would take any decision in national interest,” Ghulam Sarwar Khan, federal minister for petroleum, said during an informal talk with the journalists.

Commenting on International Monetary Fund’s (IMF) demand for increasing gas prices, Khan said the government would resist hiking gas prices to maximum level.

Regarding offshore drilling in sea, the minister said there could be ‘good news’ and however added that it would take around three weeks.

“The explorer was to drill to 5,500 meters and it had reached to 4000 meters,” he added.

Khan said the exploration companies had given a plan to invest $75 million and the government had facilitated these companies by giving them the same tax exemptions available to all exploration companies.

Regarding inflated gas bills, he said that an audit firm M/S Ferguson had submitted its audit report and said that 93 percent gas consumers out of 3.2 million had received inflated gas bills due to revision in gas slabs by the government on SNGPL system.

However, he said the government would reimburse the amount to the affected gas consumers till June this year.

Khan said the government had offered 10 blocks to exploration companies but no international company had participated.

To another question, he said that a summary had been sent to cabinet to appoint chairman and board of directors of SSGCL, PPL, OGDCL, SNGPL and PMDC, which would be taken up in next meeting.

“The nomination of professional women had also been proposed on each board and provinces had also been given representation in upcoming boards,” he added.

He further said the government was also working on reducing gas losses and had given target of reducing 1 per cent UFG of gas companies on annual basis.