STAFF REPORT IBD: The gas position in Pakistan is set to improve in near future as the contract for LNG (Liquefied Natural Gas) tender for the import of 400 MMCFT LNG is going to get forward on the basis of the recommendations of the Board of Directors of the Sui Southern Gas Pipelines Company, (SSGC) and the Economic Coordination Committee of the Cabinet.
According to details, three bidders have been technically declared qualified by the SSGC and their Consultants. They include, Elengy of Engro Pakistan, GIP of Turk Consortium and Pakistan Gasport of Iqbal Z Ahmed.
Bids for the second LNG Import Project, also of 400mmscfd, are due on April 1. When implemented, this project will also exclusively serve the power generation sector and yield additional savings of around $1.1 billion from fuel substitution. Under the terms and conditions approved by the Federal Cabinet, the winner of the first tender cannot participate in the second.
Natural gas accounts for 50 percent of Pakistans total energy mix. The current shortage of 2,000mmscfd has led to the closing down of industries and businesses across the country.
The LNG Policy was issued in 2006 but so far no project has materialised. This is the second attempt to bring LNG to Pakistan.