Sui Southern Gas Company (SSGC) is considering an offer to import 350 to 500 million cubic feet (mmcf) per day of liquified natural gas (LNG) from Qatar or Iran to meet rising domestic demand. This was stated by the SSGC Managing Director Munawar Baseer Ahmed here on Wednesday.
He said that three to four international firms including Shell and Asia Petroleum have approached the company as well as Ministry of Petroleum and Natural Resources and offered to supply LNG from Iran or Qatar.
"We have asked them to lower their price from $3.50 to $2.50 per million cubic feet (MMCF) per day. Our average buying price is about 2.20 mmcf per day in the country," Baseer said and hoped that they will come back with the new price structure.
He said that LNG project will be faster in implementation as it will not involve pipeline installation, any territorial issue or third party interest which is related to Pakistan-Iran gas pipeline or Turkmenistan. The gas will be converted into LNG at the fields in Qatar or Iran and will be gasified in Pakistan, he added.
He said that the demand for gas was rising rapidly and SSGC will need 1 billion cubic feet per day in next three years to cater to this demand. Currently SSGC was supplying 750 mmcf to its consumers, he added. He said that by 2010, there would be a significant shortage of gas in the country if not imported at a large scale.
The domestic demand was rising at a rate of 6 percent while CNG station requirements growing at 10 to 12 percent per annum. SSGC has to supply gas to DHA desalination plant, Fauji Fertiliser plant at Bin Qasim, Tapal Energy, Textile City, Al-Tuwairqi steel mills.
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