Page 5 - AsianOil Week 29
P. 5
AsianOil SOUTH ASIA AsianOil
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Production
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Data: BP
Pakistan's gas split
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. Transparency Internationals’ Corruption Per- ceptions Index 2018 ranks the country 117 out of 180 countries.
Khan’s crusade, however, has also been fairly criticised for only targeting the govern- ment’s political opponents as well as slowing economic growth.
The construction of the country’s LNG terminals helped to shore up a domestic power shortfall that led to frequent black- outs and constrained economic growth. But decision-making around a new terminal has bogged down over the last year, with o cials and civil servants waiting 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 short- ages. 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 (PSO). 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).
In 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 sub- stantially. 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 29 24•July•2019 w w w . N E W S B A S E . c o m P5
bcm per year
