KARACHI: The project of Liquefied Natural will be accomplished before its set timeline of 335 days started from today with the financing of $2 to 2.5 billion to import 400 mmbtu for various sectors of energy dependent, said Shahid Khaqan Abbasi, Federal Ministry of Petroleum and Natural Resources.
Speaking as chief guest at the signing ceremony between Sui Southern Gas Limited and Engro Elengy Terminal Pakistan here on Wednesday in line with development of LNG import terminal at Port Qasim, he said the prices of LNG will be settled as most reasonable at par with the availability and trend of the fuel cost in the global market though is no resource of energy which is cheaper at present situation.
The government will make sure that the prices will be set less than $17 mmbtu but the project will contribute significantly to meet the sprawling energy demands in the country setting to increase 10 percent additional supplies to industries and commercial sectors to have substantial share in the GDP.
The project will generate additional 500 to 600 mmbtu due to its regasification mechanism of terminal, he said.
The volume of the gas is greater than what our biggest gas fields—Sui and Qadirpur—are producing, he added.
Pakistan will save $100 million per month or $1.2 billion per year in the replacement of furnace oil in power sector with LNG, Abbasi said referring to the share of gas in over all energy mix of the country stands greater than 50 percent compare with different resources.
Pakistan State Oil (PSO) will take share in the financing of the project whereas the SSGC will be facilitator and Engro will be handing overall operations.
The project is advancing towards its completion. The next stage will be talks on government level with Qatar and holding of competitive bidding among suppliers/ exporters, he mentioned.
Regarding loadshedding, he said the government is committed as part of its principle not to provide electricity to those entities and consumers who are defaulters of bills payment. Hence, even disconnections were reported in different organization of the public sector.
SSGC is committed to ensure relief to customers hence its directly and indirectly not take any measure as a policy decision that could affect electricity available in the city, Minister said in reply to the question of K Electric due payment of Rs 50 billion to SSGC.
SSGC is a public sector entity which takes national obligation to facilitate masses hence it will continue supplying gas to K Electric for the purpose of power generation.
He said and added that LNG project will be alternative for people of Karachi in case of disconnection of 550 MW electricity of NTDC by next year.
Abbasi added the gas sector is far stronger than power sector in the country however the government is firm in bringing improvement in the sector as much as possible including controlling UFG in gas distribution companies.
MD SSGC Zuhair Siddiqui, CEO Engro Corporation Ali Alauddin and CEO Engro Elengy Terminal Sheikh Imran ul Haque were also present on the occasion.
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