Page 7 - AsiaElec Week 30
P. 7
AsiaElec COMMENTARY AsiaElec
55 50 45 40 35 30
2010 2011
2012 2013
Production
2014 2015 2016 Consumption
2017 2018
Data: BP
Pakistan's gas split
Abbasi has defended his prominent role in the development of the country’s LNG sector, saying many o cials were afraid of being inves- tigated. “Nobody wanted to do anything, as they were scared of NAB,” Reuters quoted Abbasi as saying on July 4. “We had good people who stuck their neck out and they’re all su ering today.”
Abbasi’s arrest is arguably part of a much- needed clean-up of Pakistani politics. Trans- parency Internationals’ Corruption Perceptions Index 2018 ranks the country 117 out of 180 countries.
Khan’s crusade, however, has also been fairly criticised for only targeting the government’s political opponents as well as slowing economic growth.
e construction of the country’s LNG ter- minals helped to shore up a domestic power shortfall that led to frequent blackouts and con- strained economic growth. But decision-making around a new terminal has ground to a halt over the last year, with o cials and civil servants wait- ing to see where the hammer will fall next.
On the rise
Pakistan has two FSRUs, with the second – the BW Integrity – also moored at Port Qasim. ere has been discussion of a third FSRU in the coun- try, potentially starting up in 2020, although this now seems unlikely to occur on time.
The Economic Co-ordination Commit- tee (ECC) approved the plan in early July, in
recognition of the country’s gas shortages. Talks between companies and the government have only made slow progress, amid concerns of competition.
ExxonMobil had been interested in back- ing an FSRU plan in the country but dropped out, marking a major setback for expanding its import capacity.
Qatar began supplying LNG to Pakistan in 2016, under a deal that will run until 2031, with Pakistan State Oil. is agreement covers the provision of 3.75mn tonnes per year (tpy). Additional supplies come from Eni and Gunvor, according to the International Group of LNG Importers (GIIGNL).
During 2018, Pakistan received 6.86mn tonnes of LNG, up from 4.62mn tonnes in 2017. Given the country’s gas needs, if more capacity can be secured, there is scope for imports to rise substantially. Wood Mackenzie has forecast LNG demand will grow to 11mn tonnes in 2025 and 17.5mn tonnes in 2035, making “Pakistan the 8th largest global market. ere is also upside to our forecast.”
Pakistan issued a 10-year tender for 240 cargoes in June, closing last week. Reuters said hopeful participants included Eni, PetroChina, Azerbaijan’s SOCAR and Tra gura. O ers will be opened on August 2, with prices disclosed – as part of Khan’s anti-corruption drive. e move is laudable but without more political oversight, plans for increased regas capacity will remain on the sidelines.
Week 30 30•July•2019 w w w . N E W S B A S E . c o m P7
bcm per year
