LNG can bridge gas demand-supply gap: ETPL

KARACHI: Natural gas production in Pakistan is approximately four billion cubic feet per day (Bcfd) against an accumulated demand of more than six Bcfd and liquefied natural gas (LNG) can meet the shortfall, said a terminal operator.
“With less discovery of significant gas reserves in the country, two billion cubic feet gas shortage leads to hour-long load-shedding of gas supply, long queues at CNG (compressed natural gas) stations and gas cuts to fertiliser plants,” said Syed Mohammad Ali, Chief Executive Officer at Elengy Terminal at Port Qasim in a statement.
Ali said despite all efforts by the government including the import of natural gas, the shortage could not be plugged within the next couple of years as demand for gas was increasing fast.
“The country has limited options for alternates and fuel displacement," he said.
Domestic sector tends to overcome natural gas shortages by using liquefied petroleum gas or kerosene as substitutes. Both the fuels are inherently unsafe for domestic use compared with natural gas or LNG, and are also expensive replacements, he said.
Pakistan has a power generation capacity of up to 820 megawatts from dual fuel-- diesel or natural gas.
In case of gas shortages, these power plants became inoperative or were to be shifted on diesel (HSD).
In 2014-15, 2.8 million tons of high speed diesel (HSD) was imported.
HSD is more expensive than LNG.
Ali said liquefied natural gas remains a cheaper option from a cost-to-economy perspective.
LNG, when compared with high sulfur fuel oil (HSFO), is more efficient in power generation, leading to lower operational, management and transportation costs.
According to estimates, Pakistan is expected to save $ 1 to $ 1.5 billion a year by importing one bcf of liquefied natural gas and replacing LPG, HSD, low sulfur fuel oil and HSFO.
He spoke about LNG Terminal constructed by Engro (Pvt) Limited and defended the liquefied natural gas terminal tariff.
“The success of the ETPL project will benchmark all future projects in the country in terms of the high quality, standards, service and competitiveness offer,” he said.