Pakistan is planning to establish its position among major importers of liquefied natural gas (LNG) as annual imports could surpass 30 million tons by 2022.
Speaking to Reuters, Pakistan’s petroleum minister Shahid Abbasi said that the country has set an ambitious plan to boost its LNG imports that currently stand at 4.5 million tons.
He noted that, since the commissioning of the country’s first LNG import terminal in 2015, international suppliers have shown increased interest in delivering the chilled fuel to Pakistan that is looking to increase power production in order to end its energy woes.
In addition to suppliers, private companies are looking to finance and develop LNG terminals in Pakistan to serve the country’s consumers directly.
Höegh LNG, together with Qatar Petroleum, Total, Mitsubishi and ExxonMobil formed a consortium to develop a third LNG import terminal, with Höegh LNG signing a 20-year FSRU charter contract with Global Energy Infrastructure Limited (GEIL) in December 2016.
In January this year, Excelerate Energy concluded negotiations with the consortium of Engro, Fatima, and Shell to supply its second FSRU for a project that is expected to start up in 2018.
Abbasi said the country is in negotiations with Russia, Indonesia, Malaysia and Oman to secure deals for the supply of up to three LNG cargoes per month to the second LNG import terminal expected to come online in October.
He added that Pakistan could float new tenders if it fails to negotiate better terms through the government-to-government talks.
The country recently closed two tenders for the supply of 240 LNG cargoes in total to the terminal.
Italy’s Eni grabbed a 15-year deal to supply 180 cargoes of liquefied natural gas, while the commodity trading house Gunvor won the second tender to supply 60 cargoes over a five-year period.
LNG World News Staff