Where energy crisis is so bad that it has crippled the economy, near-to-medium term steps become extremely necessary. Decisions to fast track the import of LNG into the country has been one such urgent decision that has been hanging in the air for the longest time now.
Don be surprised to hear that the modern global LNG industry is approaching its silver jubilee in 2014. The political whimpering and bureaucratic fluke aside, the rationale for the bringing LNG imports into the local energy mix makes sense. And it is about time.
For an analogy, the domestic energy sector needs fare reasonably well with some of the randomly selected global themes for LNG import and demand. There is a dire need for ensuring national energy supply along with infrastructure improvements that could absorb demand shortfalls and kindle investment.
Globally, the demand for LNG has also been moving with stifling pace of 7.6 percent annually compared to the 2-3 percent growth in global natural gas demand.
Asia, especially China and India, has been pinpointed as the key driver for LNG demand of late, contributing to a chunk of the global consumption. And with this, the trend of price-sensitive consumers who have other competitive energy options as well, has emerged, which should bode well for Pakistan should it go ahead with LNG import.
The depressing energy sector woes leave no more time for further fruitless deliberations. Apart from other pressure, the authorities and bureaucracy have their share of the blame for the delays in such high priority initiatives.
Those at the helm should understand that though it is the quickest way, LNG import is not a one-day story. Like some of the major LNG importers, LNG in Pakistan is not any brownfield project which only requires expansion to existing facilities and infrastructure.
Besides expediting work on LNG terminals and infrastructure, the situation also calls for a mass awareness campaign along the cost-of-imported-gas lines, because in the end it all comes down to the overarching issue of cost and pricing. With oil-linked pricing so far, one thing is clear: LNG is not cheap. And just because the cost to supply is high, the prices are not collapsing any time soon.
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Global Themes for LNG Demand Pakistan Priority Status
National Energy Supply Security Priority
National Energy Infrastructure Renewal Top Priority
De-carbonisation of Economic Growth Secondary
Opposition to Nuclear Power generation Secondary
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