LNG supply at CNG stations in Pakistan to go ahead after government agreement

The Ministry of Petroleum and Natural Resources in Pakistan has won the backing of the Prime Minister and his cabinet over the planned supply of liquefied natural gas (LNG) at compressed natural gas (CNG) filling stations, claiming that the move will help save Rs200 billion per year (Pakistani Rupees) in oil imports.

“A market-based system for LNG import and its supply at CNG stations has been considered and is now being introduced. The financial impact of this initiative could be Rs200 billion per annum,” said Petroleum Minister Shahid Khaqan Abbasi.

A fast-track LPG terminal is being established in Karachi, which will be able to receive 400 million cubic feet of gas per day (mmcfd).

“A tender for another 400 mmcfd capacity LNG terminal of was floated recently and being pursued vigorously,” Abbasi said. In the meantime, he added, negotiations with China National Petroleum Corporation (CNPC) were under way for setting up an LNG terminal at Gwadar and laying of a pipeline from the port city to Nawabshah.

Pakistan is going to open the market for LNG trade as Pakistan State Oil (PSO) says it has received a good response from producers and suppliers such as Shell and British Petroleum.

In the private sector, CNG stations are the first that have come up with a plan to give up consumption of locally produced natural gas and use imported LNG. According to the petroleum ministry, the country will be able to save $300 to $700 million in annual oil imports by turning to LNG.