Energy Outlook: Pakistan to build 1,100 km LNG pipeline with Russia

Syed Umarullah HussainiWeb Editor

17th Dec, 2020. 12:39 pm
Pakistan LNG

The Government of Pakistan has announced to build a 1,100 kilometer (684 miles) pipeline in July with Russia that will allow the South Asian nation to operate more liquefied natural gas terminals.

According to the details, Pakistan’s gas distribution companies Sui Southern Gas Co. and Sui Northern Gas Pipelines Ltd., which have started acquiring land for the pipeline, will be a part of the project, while a Russian consortium will lead construction.

Nadeem Babar, petroleum adviser to the prime minister in his interview to Bloomberg, said that the South Asian nation will have a majority share of 51% to 74% in the project whereas the Putin administration will own the remainder.

Babar said that Pakistan has also auctioned a record 20 oil and gas blocks to encourage exploration activity, with bids expected by mid-January.

Babar added that it’s running the two terminals at capacity to meet peak winter demand, with 12 cargoes secured for December and 11 for January.

Furthermore, he revealed that two more LNG terminals, Energas and Mitsubishi’s Tabeer Energy, are expected to start in the next few years.

Babar also added that Pakistan has LNG deals for 700 million cubic feet a day and Prime Minister Imran Khan’s government will decide if the nation needs another medium-term LNG contract for five years after reviewing demand from power generators, the biggest consumers of the fuel, in the next three months.

The nation has also decided that it will only import cleaner Euro-5 diesel from January after doing the same for gasoline earlier this year, he said.

Besides imports, Pakistan also plans to add 150 million cubic feet a day of domestic gas output this month, including 50 mmcfd from the Mari gas field, added Babar.

Pakistan imported its first cargo five years ago and currently has two LNG terminals. Both LNG terminals have a storage capacity of approximately 140,000 tons of LNG and a regasification capacity of 1.35 BCFD, out of which 1.2 BCFD is contracted to South Southern Gas Company (SSGC)

Pakistan has become one of the top developing markets for the super-chilled fuel in recent years as domestic gas production has plateaued, forcing the nation to import cargoes.

Pakistan has an LNG import infrastructure with the capability of handling thirteen vessels per month with load size ranging from 143,000 CBM to 165,000 CBM.

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