Import of LNG to help generate cheaper power: Abbasi tells senate

ISLAMABAD Nov 3 (APP): Federal Minister for Petroleum and Natural
Resources Shahid Khaqan Abbasi on Tuesday informed the Senate that
import of LNG would help generate cheaper power.
He was winding-up debate on adjournment motion moved by Mohsin
Aziz on behalf of Saeed Ghani, Ilyas Ahmed Bilour and Sherry Rehman
regarding failure of OGRA in fixing sale price of LNG and other issues
including LNG import price, inadequate regulator provisions and other
related matters.
The minister said imported LNG was the only cheaper
source to meet the country’s growing energy needs. “It will also help
strengthen the national kitty.”The minister said the past three governments made five attempts to import LNG but they failed for adopting integrated approach. But the credit goes to the Pakistan Muslim League-Nawaz (PML-N) government for taking practical steps in this regard.Shahid Khaqan Abbasi said the imported LNG was being used for generating electricity, in Compressed Natural Gas (CNG) and fertilizer sectors.He said the present government has succeeded to provide the country with its first LNG-based gas within 20 months of its tenure. The government pursued a transparent process for developing a terminal and the Engro Elengy had built the SSGC LNG re-gasification terminal in a
record time as the contract was signed on April 2014 and first gas
flow was ensured in March this year, he added.The minister said Pakistan needed to import natural gas through pipelines or LNG, but in fact Iran-Pakistan Pipeline project was delayed due to international sanctions. In addition, Turkmenistan-Afghanistan-Pakistan- India (TAPI) pipeline also faced delay delayed due to many reasons.In such situation, he said, the government ventured into the LNG import through long term, medium term contracts and support purchases,besides finalizing LNG Supply Contract (SPA) with Pakistan State Oil
(PSO).He said cost calculations proved that RLNG was a cheaper than all
imported fuels and so far 14 LNG cargoes had been re-gasified at
the LNG terminal.The minister also suggested for constituting a Senate Committee to
monitor the pricing of the LNG.Chairman Mian Raza Rabbani directed the minister to inform the House about price of LNG arrived through 14 cargo shipments in the country.