LNG import to help end the energy crisis by 2018: Abbasi
Khaqan Abbasi claims to end energy crisis by 2018.
Dunya News Report (Yaruq Malik)
ISLAMABAD: The Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi has claimed that the energy crisis in Pakistan will end by 2018. The minister insisted that the federal government is dedicated towards ending the energy crisis in Pakistan for which the import of Liquefied Natural Gas (LNG) from Qatar was the intelligent option.
“The solution to the energy crisis lies in gas addition,” said the minister.
While speaking at a conference, the minister said that Pakistan has the lowest petroleum product cost in the world. He added that the government will ensure more relief in terms of petrol prices if the international prices of crude oil come down again. He also stated that Liquefied Petroleum Gas (LPG) is costing the consumers 10 percent more than that of the gas that comes through the pipelines.
“LPG consumers are paying 10 percent higher prices compared to gas supplied through pipelines,” Mr. Abbasi said.
Moreover, he said that the petroleum ministry has sent a detailed summary to the Council of Common Interests (CCI) in order to regulate LPG prices to provide maximum relief to the consumer.
The All Pakistan Compressed Natural Gas Association (APCNGA) has welcomed the deal between Pakistan and Qatar for the import of Liquefied Natural Gas (LNG) and has assured that with the import of LNG in Pakistan, the Rs450 billion CNG sector will revive again. It was also reported that the CNG prices will be cut down after the first LNG ship arrives from Qatar next month.
APCNGA Chairman Ghiyas Paracha praised the efforts made by the federal government to tackle the energy crisis in Pakistan through the import of LNG and expressed confidence that through the Pakistan-Qatar LNG deal, hundreds of CNG stations across the country will reopen that had been closed due to the shortage of gas for several years.
The Chairman said that CNG is an environment-friendly fuel and remains thirty percent cheaper than petrol. He added that the APCNGA will put efforts in bringing the current CNG price down from Rs 52 per litre to Rs 47 per litre. He said that consumers will benefit from the availability of CNG and its lower prices.
Previously, Pakistan and Qatar officials signed several Memorandums of Understanding (MOU) including the import of Liquefied Natural Gas (LNG). Pakistan will import 3.75 million tons of LNG (annually) from Qatar-Gas Company to tackle the gas and power shortages in the country. During Prime Minister Nawaz Sharif’s visit to Qatar, the Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi signed the agreements to increase co-operation in various fields including energy, trade, defense, investment, education, health, academic research, radio and television.
Moreover, the government had been under pressure from the National Accountability Bureau (NAB) after the LNG scandal that took place prior to the Pakistan-Qatar LNG deal. The government had planned to buy LNG at inflated prices in order to tackle the energy crisis in Pakistan which would have cost Pakistan $5 million per day according to the Pakistan Economy Watch (PEW) officials. According to PEW, the deal would have finalized at $18/per million British thermal units (MMBTU) which would have eventually become $21/MMBTU at the Karachi ports. This deal would have caused a 200 percent increase in gas prices for the end users.
The current deal between Pakistan and Qatar is not a ‘slope’ priced deal as under the ‘S’ shaped deal, the price would vary greatly due to the ever-changing economic conditions in the International market.
“The LNG price was not decided in ‘S’ shaped fearing the wrath of NAB,” the minister said.
“Pakistan’s energy future is directly linked to liquefied natural gas” said the Federal Minister. He stressed that LNG is the best solution for Pakistan’s energy crisis due to its cost effectiveness as compared to other available resources.
The first shipment of LNG is expected to reach Pakistani ports by the first week of March. Pakistan’s LNG requirements will reach up to 4 million tons per annum in 2017.
