Page 9 - GLNG Week 34 2022

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Pakistan adjusts LNG import

policy as PM visits Qatar

POLICY THE Economic Coordination Committee of guarantees or off-take commitments on an
Pakistan’s cabinet has approved changes to the optional basis for negotiated tariffs with first
country’s LNG import policy in the midst of a right of use for terminal developers, operators,
struggle to secure sufficient gas imports as prices and their associated undertakings, Pakistan’s
surge into ranges that Islamabad is finding near daily Dawn reported on August 20. Information
impossible to meet. relevant to the operations of the terminals will
The policy changes include the removal of have to be submitted to Pakistan’s Oil & Gas Reg-
restrictions on new private sector LNG termi- ulatory Authority (OGRA).
nals to provide part of their capacity to the gov- The policy changes are seen as a means to
ernment. Changes to LNG Policy 2011 apply to encourage foreign and private investment in
those terminals already operational, allowing the LNG sector and hopefully attract the inter-
them to use spare capacity that is not contracted est of Qatar, which is a key supplier of LNG to
by the government, but it is noted that this devel- Pakistan. Pakistan has two long-term supply
opment could result in a shortage in existing gas contracts with Qatar, which delivers up to nine
pipeline capacity for new terminals. cargoes per month. However, during two recent
“Under the circumstances and to diversify tenders for LNG supplies, Pakistan has failed to
the LNG import infrastructure, there is a need attract interested parties.
to support and encourage foreign/private invest- QatarEnergy has previously expressed inter-
ment in the new LNG terminals at their own est in acquiring a stake in a new terminal and dis-
costs and risks to meet the growing demand of cussions with Pakistani Prime Minister Shehbaz
RLNG (regasified LNG) in the country,” a gov- Sharif are expected to focus on this and the pos-
ernment statement said. sibility that Qatar will invest in other Pakistani
Pakistan operates two LNG import terminals, state-owned assets. Pakistan is also expected to
both in Qasim on the Arabian Sea. The terminals ask for deferred payments regarding shipments
have a storage capacity of 140,000 tons and com- of LNG already delivered.
bined regasification capacity of 1.35 bcf/d with Meanwhile, Saudi Arabia has offered to sup-
1.2 bcf/d contracted to the South Southern Gas ply LNG to Pakistan on a commercial basis and
Company. The terminals can accommodate 12 proposed an agreement through the Saudi Fund
vessels per month. for Development that will cover funding and
The policy document was amended to pro- supply of Saudi crude and petroleum products.
vide Third Party Access (TPA) to new LNG The Fund has also expressed an interest to pro-
terminals and associated facilities developed vide financing for projects in Pakistan’s energy,
by the private sector without any government industry, mining and infrastructure sectors.™

Week 34 26•August•2022 www. NEWSBASE .com P9