ISLAMABAD, – Federal Minister for Energy Mr. Omar Ayub Khan addressed to the audience of LNG Producer-Consumer Conference 2020, JAPAN through the video link.
In his keynote address, Federal Minister said that Pakistan had been a gas producing country with daily production of over 4 billion cubic feet per day (BCFD), which was sufficient to meet its demands. However, since almost the last two decades, Pakistan has been facing shortage of gas supplies due to the yearly average decline of 5% in production & steady growth in demand for domestic and commercial sector. He said that Pakistan had been setting up gas pipeline infrastructure for import of gas to meet the gap between the supply & demand in the country.
The Minister updated the audience on the key initiative of current Government to expand the footprint of private sector in LNG sector as a prime mover in meeting the growing future gas demand in the country.
The Minister apprised the participants about commissioning of new LNG terminals and expansion of
transport capacity of the existing RLNG pipeline by laying an additional pipeline with 1,600 MMCFD to evacuate additional RLNG volumes from the two existing terminals and from the LNG terminals being developed by the private sector.
He said that the Government has allowed the private sector to participate in utilizing the gas network of Sui Companies via Third Party Access dispensation whereby the Private sector could import LNG, holding title of the commodity (LNG & RLNG) whereas state-entities will provide regasification services at a tariff determined by the regulator. More so, the Government is encouraging the private sector to develop small-scale LNG supplies to meet off-grid gas demands through LNG trucking commonly known as a virtual pipeline. Small scale LNG would offer significant investment opportunities for the private sector.
In the conclusion, the Minister said that Prime Minister Imran Khan and his team focused on improving the Ease of Doing Business and facilitating new-entrants in the country. He voiced a hope that international investors would seek huge investment & business opportunities to cultivate open market regime in the LNG sector of Pakistan.