ISLAMABAD: The private sector is likely to start import of LNG by April 21, 2021 as grant of unutilised Liquefied Natural Gas (LNG) terminal capacity is currently in process.
According to a private sector importer, the private sector has suggested some changes in third-party rules to the Oil and Gas Regulatory Authority (OGRA).
“The amendment in OGRA third party rules is under discussion by the authority and may accommodate our suggestions before we start importing the LNG,” he said.
The re-gasification volume is at around 1,000 Million Cubic Feet per Day (MMCFD) against the total existing capacity of around 1,200 MMCFD gas.
So, the government has no serious concern with regard to any unutilised capacity and as Pakistan LNG Ltd has already floated a tender for auction of any unutilised capacity.
The OGRA had recently granted the first-ever marketing licences to private companies for undertaking regulated activities with regard to the sale of natural gas and LNG.
Besides, it issued two “provisional licences” of supplying LNG through cryogenic bowzers to consumers, especially, where a regular gas transmission network does not exist.
The Pakistan Economic Survey says that the country’s indigenous gas production is around 3.7 BCFD against the demand of six BCFD to meet the requirements of more than 9.6 million consumers across the country.
According to a recent report by the OGRA, the gap between demand and supply of gas could increase by 5,389 MMCFD by 2029-30, if necessary measures are not taken to increase local exploration and production activities.
Copyright Business Recorder, 2021