ISLAMABAD: Universal Gas Distribution Company (UGDC), a private sector entity, signed a Liquefied Natural Gas (LNG) purchase deal with a Singapore-based firm, Trafigura, on Thursday.
The agreement was signed by heads of the two companies in Houston, United States, according to a statement issued by the company.
“Trafigura has a long presence in Pakistan and it owns the excess capacity (not contracted by PLTL) in the terminal of Pakistan Gas Port Consortium Limited (PGPC). Trafigura will use some of its capacity to import LNG and sell gas to the UGDC,” the UGDC Chief Executive Officer Ghiyas Paracha said.
Paracha said according to the Economic Coordination Committee’s decision in July 2019 and the cabinet’s decision in August 2019, the private sector can use additional private capacity of LNG terminals.
“This will not only help the government to save foreign exchange but will also encourage private sector attract foreign investors in the energy sector,” he added.
The CEO appreciated the government for allowing private sector to set up five LNG terminals in Pakistan, expressing confidence that it would help meet the growing energy needs of the country.