ISLAMABAD: After the government opened up the energy sector under its ‘ease of doing business’ strategy, a multinational company will start construction on the first merchant Liquefied Natural Gas (LNG) terminal in the country by end of January 2021.
“A vibrant structural framework is very much in place under which construction work on the first private sector LNG terminal will start by end of the January, whereas physical work on another merchant terminal will commence in second half of the year,” a senior official privy to the development told APP.
According to the officials, the Oil and Gas Regulatory Authority (OGRA) will issue the construction licence within a day or two, while all other agreements, permissions and arrangements have almost been finalised.
After setting up the terminals, the companies would import and sell the commodity on their own without any involvement of the government except in regulation matters.
It may be noted that the country’s existing natural gas reservoirs are depleting fast at a rate of 9.5 per cent per annum. LNG is the only available instant remedy to bridge the increased gap between demand and supply.
Currently, Pakistan’s indigenous gas production is around 3.7 Billion Cubic Feet per day (BCFD) against the demand of 6 BCFD.
According to a recent report by OGRA, the gap between demand and supply of gas could increase by 5,389 Million Cubic Feet per day (MMCFD) by 2029-30.