Pakistan: LNG imports to be raised to 4.5 million tons per annum

The government has planned to increase Liquefied Natural Gas (LNG) imports to 4.5 million tons per

annum of during 2016-17. According to Annual Plan 2016-17 of Ministry of Planning, Development and

Reforms, in order to enhance import capability of the country with regard to LNG, another LNG terminal

is being undertaken by Pakistan LNG Terminal Company Limited (PLTCL) established by the government.

The bids for 2nd terminal were invited by PLTCL and are under evaluation by the company.

To overcome natural gas shortages, the Ministry of Planning, Development and Reforms is undertaking a

fast-track LNG services project and has signed 15-year LNG Sale Purchase Agreement (SPA) with Qatar

with initial quantities of 2.75 million tons per annum (MTPA) for the first year and 3.75 MTPA by 2017.

About the TAPI project, its activities including finalisation of transit fee, gas transport agreement and

appointment of EPC contractor would be implemented during 2016-17. The implementation on IP

project will be reviewed in consultation with the Iranian counterpart and accordingly a revised

implementation framework will be devised.

According to the Annual Plan, almost all the sectors received enhanced gas supply particularly

compressed natural gas sector (CNG). Another project, that is, Gwadar-Nawabshah LNG Terminal and

Pipeline Project envisaging lying of 42″ 700-km pipeline along with LNG terminal of 600 MMCFD

capacities is under implementation. In this regard Framework Agreement has been signed between the

National Energy Administration (NEA), China and Ministry of Petroleum and Natural Resources. To

transmit the imported LNG to upcountry, the SSGCL will construct 42″ diameter 342-km pipeline from

Karachi (Pakland) to Khairpur (Nara) for transporting 1.2 BCF RLNG dedicated to SNGPL. The project is

expected to be commissioned by December 2016. Moreover, 4 LPG Air Mix Plants would also be

installed. The Gwadar-Nawabshah Natural Gas Pipeline and LNG terminal at Gwadar are being actively

pursued to be completed by 2018.

According to Annual Plan 2016-17 of Ministry of Planning, Development and Reforms, the domestic

production of natural gas was 1.49 trillion cubic feet which is almost as per the target of 1.50 trillion

cubic feet. About the crude oil, Annual Plan revealed that the annual production of crude oil was 32.03

million barrels in current fiscal year-2015- 16, which is 79 percent of the target of 40.44 million barrels.

The Annual Plan further revealed that a total of 116 wells including 52 exploratory and 64 developments

are planned to be drilled by the Exploration and Production (E&P) companies. The seven existing OMC”s

will construct ten new oil storages at six locations.

An amount of Rs 143 million has been allocated in PSDP 2016-17 for the two projects of Geological

Survey of Pakistan, (i) Appraisal of Newly Discovered Coal Resources of Badin Coal Field and its adjoining

areas of Southern Sindh and (ii) Exploration of Tertiary Coal in Central Salt Range, Punjab.

The Sindh Engro Coal Mining Company (SECMC) with their Chinese contactors will continue its mining

project of 3.8 million tons per annum capacity for supplying Thar coal to 2x 330 MW power plant at

Block-II. About 40 million cubic meters of over burden will be removed. The Khyber Pakhtunkhawa Oil

and Gas Company Ltd has planned to execute Basin Studies of Khyber Pakhtunkhawa and Establishment

of Khyber Pakhtunkhawa Hydrocarbon Research Centre.

About the Thar coal development, the government of Sindh has developed 12 blocks at Thar coal field.

The Sindh Engro Coal Mining Company (SECMC) has started mining work to develop an open pit mine at

Thar Block-II and about four (04) million cubic meters overburden has been removed. The construction

of temporary site facilities has also started by the Chinese contractor. The project being an important

component of CPEC has achieved financial close.

Source: Business Recorder

NGS INDIA