ISLAMABAD: All the technical formalities would likely be resolved for bringing first LNG cargo by a private party on October 9th 2020, a source said. Around 300mmcfd additional/idle capacity is available in government and private LNG terminals, which can be utilized by any private investors.

Special Assistant to the Prime Minister (SAPM) Dr Nadeem Babar has already announced that the government will facilitate private sector investor United Gas Derivatives Company (UGDC) by utilizing the government and private LNG terminal capacity to import LNG.

The UGDC Chairman, Ghiyas Paracha, told Business Recorder that the UGDC would meet the officials of the PLTL and the PLL to resolve the technical issue including quantity and date available for LNG cargo at Port Qasim, and a meeting was scheduled for Friday (October 9).

In September 2019, the world's largest oil and gas company, Exxon Mobil, had inked a gas supply deal with Pakistani energy company UGDC in Houston (Texas), which would result in the import of private LNG for the first time in the history of Pakistan.

The private entity, UGDC, will provide its product to CNG stations at comparatively cheaper rates, and the CNG price will tumble by Rs6-8 per liter against petrol price.

Private importers, gas companies, terminal operators, and regulatory authority need to be on the same page to make this enterprise a success. The Sui Southern Gas Company (SSGC) already predicted a shortage of around 300mmcfd gas in the coming winters in Sindh and Balochistan.

The CNG stations across Sindh are likely to remain shut during the entire winter season as the SSGC made it clear that it will not be able to supply fuel due to a serious gas shortage in the province, suggesting the owners opted for the LNG.

The federal government also tendered for six cargoes for December 2020. December and January have always seen surge in demand for gas, but during the current year, the demand-supply shortfall will be greater on the back of higher consumption, and diminishing indigenous supply.

Pakistan LNG Ltd (PLL) tendered six spot cargo purchases for delivery in December. An advertisement by the PLL said, the country was seeking the cargoes, each of 140,000 cubic metres, in six delivery windows, and November 2 is the deadline for submission of bids.

Copyright Business Recorder, 2020