Speaking on the occasion, he called for adopting a creative approach to respond to emergent energy challenge as well as work out a comprehensive strategy on sustainable basis.

Sindh Governor Dr Ishrat-ul-Ebad Khan, Chief Minister Syed Qaim Ali Shah, Minister for Port and Shipping Babar Khan Ghori, Special Assistance to PM on Petroleum Dr Asim Hussain, provincial ministers, high officials and leading businessmen were also present on the occasion.

He said the the fluctuating nature of crude prices in the international market has posed serious challenges to global economies and the reliance on imports cannot be a feasible long-term solution.

Gilani pointed out that the Council of Common Interests has very recently approved the National Petroleum Exploration & Production Policy 2012, which recognizes the operating challenges and key considerations that face Pakistan oil exploration and development industry.

He noted the policy signifies the government's commitment to provide fiscal and regulatory incentives to E&P companies, which will provide an impetus to them to speed up their exploration and development programmes with a view to maximizing domestic oil and gas production in the coming years.

Referring to core objectives of the policy, the Prime Minister said that it would accelerate exploration and production activities in Pakistan with the purpose to achieve optimum self-sufficiency in energy by increasing oil and gas production.

Similarly, the policy will promote direct foreign investment in the country's energy sector by increasing competitiveness of its terms of investment and encourage the Pakistani oil and gas companies to get fully involved in the investment opportunities.

At the same time, it will promote increased E&P activity in the onshore frontier areas by providing globally competitive incentives, he added.

Gilani said that this policy will encourage indigenous production and decrease reliance on imported energy in a phased manner. "It is in this background that recourse to LNG and LPG is critical to bridge the gap between demand and supply and ease pressure on local production", he observed.

He pointed out that Pakistan has concluded a Memorandum of Understanding with the Government of Qatar for import of LNG which is equivalent to 500 million cubic feet of gas per day. The imported LNG will be provided to power houses to generate 2,500 megawatt of power in the country, he added.

Recounting key mega projects undertaken by the present government to meet the energy demands, the Prime Minister said they included Diamir Bhasha Dam, Thar coal power project, TAPI project, and CASA-lOOO in addition to dozens of small and medium-sized dams across the country.

"Pakistan is also committed to Iran-Pakistan gas pipeline project, which will help the country overcome its energy problem to a large extent. The implementation of these mega projects will not only enhance overall energy supplies, provide energy diversity but also lead to a greater energy security."

He said that Pakistan meets 53 % its total energy requirements through indigenous oil and gas production whereas other indigenous resources further meet 19% of the country's energy needs. The remaining 27 % of the energy needs are currently being met through imports. The energy imports are likely to increase as domestic gas production and supply has presently failed to meet the demand of the domestic users, and the industrial sector power generation.

Due to their all-pervasive use by these sectors, the country's gas reserves may be insufficient to meet the rising demand and deplete fast. Such a situation will force the country to resort to importing large volumes of gas at international prices to feed the domestic market if local production is not enhanced in relation to demand.

The Prime Minister said that the establishment of SSGC-LPG terminal at Bin Qasim will greatly facilitate the handling of energy imports in the shortest possible timeframe.

Earlier the Prime Minister formally inaugurated the plant by unveiling the plaque.

Special Assistant to the Prime Minister Dr. Asim Hussain said that LPG was ignored in the country, but the present government would establish two LPG plants for producing 100 mmcf of gas per day, one in the south and the other in the north of Pakistan.

He said the government would subsidise LPG under Benazir Income Support Programme and give free LPG cylinders and stove to down trodden segment of the society.

Managing Director SSGC Azim Iqbal Siddiqui highlighted the importance of LPG plant and said the LPG would serve as a bridge fuel till such time Pakistan hits a major oil and gas reserve.