ISLAMABAD: The Sui Southern Gas Company (SSGC) has signed Memorandum of Understanding(MoU) to import Liquefied Natural Gas(LNG) as part of efforts to fulfil the country' growing energy needs.
The MoU has been signed by Zohair Siddiqui Managing Director SSGC and Stephen Pyne, Chairman United LNG of USA on the occasion of Pakistan Petroleum Exploration Promotion conference held recently, says an official of the Ministry of Petroleum and Natural Resources.
According to the MOU United LNG of USA would supply four million metric tons of LNG per year to SSGC, he said.
He added Pakistan would also own share in Liquefaction facilities in Gulf of Mexico together with United LNG of USA.
In order to ensure firm and continuous supplies of LNG, dedicated ships will be inducted for transportation of LNG to Pakistan, he said.
He said it was expected that the landed cost of LNG with an inbuilt cap, including transportation and re-gasification cost, the price of gas would be less than the price of Iran-Pakistan Gas Pipeline Project and Turkmenistan - Afghanistan - Pakistan - India (TAPI) Gas Pipeline Project.
However, he added supply of LNG from USA as per the MoU would be subject to approval of both governments - USA and Pakistan.
He said the import of LNG would supplement the efforts of Ministry aiming at ensuring energy security of the country.
Moreover, he added, solid efforts are being made by working on a number of several other options with a hope to add around 750 MMscfd gas to the system by June 2013, amounting to increase of 20 percent in existing flow.
As a promising sign, the official said the Oil and Gas Development Company Limited (OGDCL) has made a discovery of 20 mmcfd gas at well head flowing pressure of 3340 PSI in Sindh Province, which would go a long way in easing the gas crisis.
The official said the government was giving top priority to domestic consumers and during the present government 1.6 million consumers were given gas connections.
Similarly, the official said the government was also working on bringing in gas through the Iran-Pakistan (IP) and Turkmenistan-Afghanistan-Pakistan-India (TAPI) Gas pipeline projects to meet growing energy demand in the country.
He said the government was also working on Shale Gas Policy Framework, which was in an advanced stage of finalization, along with preparation of Marginal and Stranded Gas and Low Pressure Gas policies as well as Guidelines for Flared Gases to tap available resources for the benefit of the country.
He added the Shale gas had been the game changer in North America and the same can be replicated in Pakistan if plans were executed in an optimum way.
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