TWO YEARS AGO, after overcoming many challenges, Pakistan started LNG imports. It is currently importing over 4.5 million tons per year. Today we are inaugurating the country's second LNG regasification terminal, which has a capacity to handle over 5 million tons of LNG per year.
I am pleased that BW Group, FOTCO, Trafigura and Pakistan GasPort Limited (PGPL) came together to develop this LNG terminal. It is a world class facility capable of handling the biggest LNG carriers. The brand new, state of the art FSRU used for this regasification terminal will result in greater efficiency and substantial savings in internal gas usage.
With the commencement of supplies from this regasification terminal, a large part of the count country's urgent need for gas will be met and the power sector will greatly benefit from clean and efficient generation. Availability of clean burning, environment friendly and comparatively inexpensive fuel will boost the economy and make our exports more competitive. In addition, it will contribute to GDP growth and provide positive effects for the social environment.
The Government of Pakistan is encouraging the setting up of LNG terminals and direct gas sale by the private sector. I am pleased to learn that today PGPL and Trafigura have announced their commitment to proceed with a second LNG terminal at Port Qasim. I have been informed that the two PGPL regasification terminals, FSRUs, and gas delivery systems will represent a collective investment of over $1 billion. This is a reflection of the industry's confidence in the policies of the government.
Several other serious industry players are also planning to setup LNG terminals in the private sector. Pakistan needs all of these terminals and more to meet its needs. It is the policy of the government to provide a fair, balanced and attractive regulatory framework and transmission pipeline capacity to enable third party access in the gas system. Investment in these projects is being made entirely by their sponsors, without any recourse to government guarantees.
We see Pakistan's demand for LNG growing to about 30 million tons per year by 2020 and the government's target is to ensure availability of gas in any quantity to any consumer anywhere in the country. I am grateful to the companies who have invested in this important national project. I wish this project, the management of PGPL, and all its investors the very best. I am confident that they will find Pakistan to be a welcoming investment destination where the government facilitates and supports the operation and expansion of these vital infrastructure projects. PGP
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