Petroleum division to finalise pipelines allocation proposals

ISLAMABAD: The cabinet committee on energy on Thursday directed the petroleum division to submit a formal summary about pipeline capacity allocation for new terminals for the final approval.

A meeting of the cabinet committee on energy was held under the chairmanship of Minister for Planning, Development and Special Initiatives Asad Umar.

The Maritime Affairs Division presented the report of the inter-ministerial committee on establishment of new LNG terminals. The CCoE was informed that the committee had held extensive consultation and was able to address a large number of issues, which required inter-departmental and inter-ministerial consensus.

The CCoE also received a report from the sub- committee of CCoE on pipelines capacity allocation for new terminals. The committee was headed by deputy chairman Planning Commission.

The meeting was attended by the Minister for Industries and Production, ministers for commerce. maritime affairs, railways, and science and technology. Representatives of regulatory authorities and officials of provincial governments also participated in the meeting.

The issue has been delayed since earlier this year with the subcommittee arguing against allocation of 44 million metric cubic feet per day (mmcfd) in Sui Southern Gas Company transmission and distribution network to Energas and 150 mmcfd for Tabeer Energy.

Ministry of maritime affairs was given the lead role in new LNG terminals.

Pakistan has already increased spot buying of liquefied natural gas importing at least three cargoes a month. The gap between demand and supply is expected to increase to 2.7 billion cubic feet in FY2023 and 4.8 billion cubic feet by FY2028 without the imported gas, according to the Oil and Gas Regulatory Authority.

The possible gap can be bridged through enhancement in indigenous gas exploration and production through incentivising the energy sector, import of interstate natural gas through development of cross-country gas pipelines and increased import of LNG.

There are currently two LNG terminals: Elengy Terminal and Gasport Pakistan Ltd having a re-gasification capacity of 600 mmcfd each.

It first started importing LNG in 2015, with imports rising to 8.4 million tons in 2019 from 6.8 million tons in 2018.