LNG-specific energy plan approved

President Pervez Musharraf on Wednesday approved an alternative energy plan with main focus on import of LNG and setting up of its countrywide network to provide a cheaper source of fuel to industrial and domestic sectors. He also okayed a proposal of the petroleum ministry to cap private sector''s 350 million dollar investment for setting up of an LNG terminal at Qasim port, Karachi.
The president asked the ministry to encourage the private sector for LNG import and remove all bureaucratic hurdles to attract investment in this key area.
The president also directed the ministry and other departments to make LNG import plan and delivery of the alternative source of energy a success in the shortest possible time.
He was presiding over a meeting held here to review the progress made on the availability of cheaper sources of energy to industrial, commercial and other sectors to keep the pace of economic growth at the current level.
Sources told Business Recorder that the president was given a detailed presentation during the meeting on local gas resources, steps being taken by the ministry to cap investment for oil and gas sector and the private sector''s eagerness for import of gas. It also covered a comparative study on prices of LPG, LNG as these two could be major resources in the future to supplement the gas supply to ensure continuous availability to the industrial and other sectors.
The president was informed that more than one Pakistani groups were keen for LNG import for industrial and domestic use. He was told that a Dubai-based group had committed 211 million dollar investment to set up a separate berth at Bin Qasim port Karachi to handle specifically imported LNG.
He was informed that the private sector was willing to import LNG and set up a separate terminal at Qasim port and then transport imported gas to different parts of the country to use it as an alternative to LPG.
LNG will be also used for power generation to produce cheaper electricity. The president was told that Karachi Electric Supply Company (KESC) and Wapda were two major sources for buying of LNG from the private sector since it costs much less than furnace oil. LNG will also be a good alternative to LPG due to its comparative less cost.