ISLAMABAD - The prices of LNG is likely to decrease considerably, after the completion of second terminal in November, as the latest LNG cargo was priced at 11.62 percent of the Brent which is far cheaper as compare to the previous import at 13.37 percent of Brent.

“Recently we have received two cargos one priced at 12.29 percent of Brent oil while the latest one at 11.62 percent of the Brent,” official sources told The Nation. It is hoped that the prices of four more cargos will further come down, the source said. In August, six cargoes were received at 13.37 percent of Brent but in September the prices may be down which will be further decreased after the commissioning of the second LNG terminal in November.

Pakistan built its first LNG terminal in 2015 and in the beginning the price agreed with Qatar for each LNG cargo discharged in a particular month was 13.37 percent of preceding three month average of Brent value. Commissioned on March 28, 2015, the terminal has the capacity to re-gasify 600-630 million standard cubic feet per day. The terminal continues to receive a monthly average of six consignments. It is expected that after the second terminal come online it will double the annual import capacity to about 9 million tons.

After the commissioning of second LNG terminal, the import of 600 million cubic feet of gas per day or six cargoes a month will be required. The more the import increases the prices of LNG will decrease for the local consumers. So far, more than 6 million tons of LNG has been imported through the country’s only LNG terminal, which is located at Port Qasim.

It is pertinent to mention here that another consortium is expected to decide this month regarding the construction of a third LNG terminal for about $700 million Meanwhile, All Pakistan CNG Association (APCNGA) Central Chairman Ghiyas Parach has said that new LNG terminal will result increased imports, reduced supply-demand gap and further reduction in transportation costs. Paracha said that reduced price of imported gas will cut the price of electricity which will benefit all the sectors, cut the cost of doing business, improve competitiveness and boost exports. Initially, the reduced cost of transportation of gas will benefit fertiliser, textile, general industry and the CNG sectors, he said.