Pakistan s new pipeline with Russia to increase LNG import capacity
Pakistan will start building 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.
The South Asian nation will have a majority share of 51% to 74% in the project_ while Russia will own the remainder_ Nadeem Babar_ petroleum adviser to the prime minister_ said in an interview on Dec. 14. 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.
Pakistan has become one of the top emerging markets for the super-chilled fuel in recent years as domestic gas production has plateaued_ forcing the nation to import cargoes. The nation has also auctioned a record 20 oil and gas blocks to encourage exploration activity_ with bids expected by mid-January_ said Babar.
Pakistan_ which imported its first cargo five years ago_ currently has two LNG terminals. It s running the two terminals at capacity to meet peak winter demand_ with 12 cargoes secured for December and 11 for January_ Babar said. Two more LNG terminals_ Energas and Mitsubishi s Tabeer Energy_ are expected to start in the next few years.
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_ said Babar.
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. 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_ Babar said.
.png "Advertisement")
