Lahore - LNG Service Agreement (LSA) was signed between Engro Elengy Terminal Private Limited (EETPL) and Sui Southern Gas Company (SSGC) in presence of Shahid Khaqan Abbasi – Minister of Petroleum and Natural Resources; Jam Kamal Khan – Minister of State for Petroleum & Natural Resources and the senior management of SSGC and Engro Corp. This agreement is in line with the Federal Cabinet’s approval for the LNG import infrastructure project.
Speaking at the occasion, Shahid Khaqan Abbasi said, “In order to combat the energy deficit, we are working on developing an efficient and sustainable power generation, transmission, and distribution system that can cater to the demands of the country and boost our economy. LNG import is crucial because it will substantially reduce the production costs of thermal power by replacing furnace oil and will improve the efficiency of thermal generation plants. It is the fastest stopgap solution to Pakistan’s energy needs.”
Expressing his views, Sheikh Imran ul Haque – CEO of Elengy Terminal Pakistan Limited (ETPL) on behalf of Engro expressed gratitude to the Government and Ministry of Petroleum and Natural Resources for their commitment and their genuine efforts and contributions towards the energy efficiency of the country. He added that LNG Import is the fastest short-term solution to Pakistan’s crippling economic needs. Pakistan’s existing gap between gas supply/demand is approximately 1.6bcfd. At the current rate of consumption, it is expected that Pakistan will run out of gas in less than 20 years, hence it is imperative to look for the alternative source of gas in and around Pakistan. Importing LNG will enable the government to save significant foreign exchange through import substitution of oil and alleviate the energy crisis plaguing the country.
Earlier, ETPL had bid for the fast track LNG contract to handle up to three million tons per annum (MTPA) of LNG or 400 MMSCFD of re-gasified liquefied natural gas (RLNG) for the next 15 years.