LNG Imports Help Pakistan Cut Power Deficit by 20%
Pakistan has been able to reduce its power deficit by almost 20% due to imports of LNG, a senior government official was quoted as saying by The News International August 2.
The official said that LNG is now meeting 25% of country’s gas demand, the newspaper reported.
“RLNG availability has been critical,” the official added. “This source of energy is relatively cheap. New pipelines are being added to ensure smooth supply of imported RLNG from south up to north.”
LNG is becoming an important part of Pakistan’s economy which is heavily dependent on gas. It imported 2.95mn metric tons of LNG in 2016, a year-on-year increase of 181%, according to the latest annual report of the International LNG Importers Group. During 2016, 72% of its imports came from Qatar.
In only its second year as an importer, Pakistan in 2016 accounted for 1.1% of world LNG trade -- level with Thailand, and the US plus Puerto Rico, and just behind Chile's 1.2%. To keep pace with rising demand for LNG, Pakistan's government has fostered the development of new import terminals.
In addition to the existing Engro LNG terminal opened in March 2015 using an Excelerate vessel, three new such FSRUs -- owned by BW Gas, Excelerate, and Hoegh LNG -- are to be deployed by various consortia in Pakistan in mid-2017, 2018 and 2018, respectively. A fifth may follow later.