Page 7 - GLNG Week 39 2022
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GLNG ASIA GLNG
Pakistan fuel retailer plans
$500mn LNG terminal
TERMINALS
THE CEO of Pakistan State Oil (PSO) has Arabian Sea. The terminals have a storage capac-
announced that the state-owned fuel importer ity of 140,000 tonnes and combined regasifica-
and retailer plans to build an LNG import ter- tion capacity of 1.35bn cubic feet (38.2mn cubic
minal to be located near Karachi at an estimated metres) per day, with 1.2 bcf (34 mcm) per day
cost of $500mn. Syed Muhammad Taha said contracted to the South Southern Gas Company.
the terminal could be completed in four years, The terminals can accommodate 12 vessels per
although he did not say when the facility might month.
actually come into operation. Taha did not provide details about the new
Pakistan has in recent months faced a num- terminal that PSO is planning, but said: “The
ber of hurdles as the price of LNG on the spot company has reached an understanding with a
market has jumped, making it difficult for the few large customers in this regard and has begun
country to find suppliers for its spot tenders. preliminary preparations for the project that will
Pakistan has also suffered widespread flooding include Pakistan’s first LNG storage facility.”
during August that affected millions of people Pakistan uses LNG primarily to generate elec-
and hundreds of businesses. tricity, and the tight market, brought on by the
Demand for LNG is expected to increase in war on Ukraine, has caused a steep rise in the
the country in the coming years and in view of cost of electricity, by more than 80%, according
that, the cabinet in August approved changes to data from the National Electric Power Regu-
to the country’s LNG import policy. Those latory Authority (NEPRA).
changes include the removal of restrictions “As long as there is a geopolitical crisis in
on new private sector LNG terminals to pro- place,” Taha said, “prices will remain elevated,
vide part of their capacity to the government. but eventually they will come down.”
Changes to LNG Policy 2011 apply to those PSO is the largest fuel retailer in Pakistan and
terminals already operational, allowing them to operates a network of 3,500 service stations. The
use spare capacity that is not contracted by the country has also seen a surge in fuel prices this
government. year, but according to Taha, demand for gasoline
Pakistan operates two floating LNG (FLNG) and diesel is anticipated to fall during the current
imports terminals, both in Qasim on the fiscal year, which began in July.
Week 39 30•September•2022 www. NEWSBASE .com P7
