ISLAMABAD, (Pakistan Point News - APP - 10th Nov, 2016 ) : The government is in the fast-track process to establish two more Liquified Natural Gas (LNG), considered 50 percent cheaper as compared to diesel in power generation, terminals to expedite import of the commodity and increase the shipment handling capacity. Pakistan has already one LNG terminal facility at the Port Qasim set up by Engro Energy Terminal Limited which started receiving LNG supplies in March last year.
"While, the second terminal at the Port Qasim and the third one at the Gwadar deep seaport are being set up to meet ever-increasing energy needs of the country," official sources in the Ministry of Petroleum and Natural Resources told APP Thursday. They said the first terminal was built in the shortest period of 11 months, through which around 200 mmcfd (million cubic feet per day) LNG was being injected in the national system to meet the existing energy demand.
The second terminal was scheduled to start functioning in June 2017, which would complete as per the given time, they added. Commenting on the third terminal, the sources said, the Price Negotiation Committee (PNC) was holding final round of talks with the China Petroleum Pipeline (CPP) for establishment of a terminal at the Gwadar deep seaport. "For LNG terminal at Gwadar, PNC has held several meetings with CPP to negotiate price. The final round of price negotiations is being held whereafter the recommendations of the PNC will be submitted to the Economic Coordination Committee (ECC) of the cabinet for approval," they said.
The sources said the PNC, constituted by the ECC, comprised of Secretaries Ministries of Petroleum and Natural Resources, Finance, Law Division, board of Investment or his nominee, Managing Directors of Sui Northern Gas Pipelines Limited and Inter State Gas Systems. They said the PNC and CPP, a Chinese company, also held several meetings to negotiate the contract price for laying a 42-inch diameter pipeline from Gwadar to Nawab Shah, which would have the capacity to handle up to 500 million cubic feet per day (mmcfd) of gas. Accordingly, they said final recommendations of the PNC had been prepared and were being submitted to ECC for approval, adding that PC-I for the 700-kilometer gas pipeline had already been approved by the Central Development Working Party (CDWP) and Executive Committee of the National Economic Council (ECNEC).