Karachi: OGRA has requested the private sector to submit recommendations for the import of Liquefied Natural Gas (LNG) subsequent to which the project would be finalized by the government.
According to Alfalah Securities Limited, moreover, Ogra also informed that the regulatory authority had received Expression of Interests (EoIs) from a number of companies upon invitation for the import of LNG out of which three conditional licences were issued to Pakistan Gasport, Engro Corporation Ltd. and Global Energy Infrastructure Ltd. whereas, provisional licence has been issued to DSME ENR.
Pakistan’s daily gas requirement is ~ 6.50 bn cubic feet (bcf), against current supply of ~ 4 bcf, which means that Pakistan at present faces a shortage of 2.5 bcf which would further worsen to 3 bcf during the upcoming winter season. The government has taken serious steps to complete the LNG project by the end of 2012 while it has also directed Sui Northern Gas Pipelines Limited (SNGP) and Sui Southern Gas Company (SSGC) to construct the appropriate infrastructure.
The import of LNG would help industries running on gas to continue their operations in the short run while; it would also help the country to overcome the prevailing energy crisis. However, LNG would be costlier than the local gas and is considered to be a good substitute for furnace oil for the power sector.