The government is confident that the import of liquefied natural gas — initially exclusively for the power sector — will start in March.
Meanwhile, Engro, which is building the dedicated LNG terminal at Port Qasim, is a little anxious. It feels that at the current pace of progress on the proposed LNG import deal, LNG vessels may arrive long after its terminal is ready.
Government functionaries have assured the public that the higher price of imported gas will not cast a shadow on Sui gas’ pricing for other categories of consumers, particularly households.
The government intends to import up to 4m metric tonnes of LNG in 2015, at an estimated cost of about $2.5bn.
Under its deal with the government, Engro will charge 66 cents per mmbtu of LNG for handling and transmitting the gas to Sui Southern Gas Company (SSGC).
The government feels that the company’s nervousness is understandable, to some extent, but the downside is being overblown to feed pessimism.
“There is a lot of resistance, at every step, facing progressive initiatives because of bureaucratic inertia and the machinations of vested interests. I can tell you with full responsibility that the LNG import deal will be finalised and the import will start as soon as the terminal becomes functional,” Shahid Khaqan Abbasi, the federal minister for petroleum and natural resources, told the media
