ISLAMABAD (APP): The Bahria Foundation has applied to the Oil and Gas Regulatory Authority (OGRA) for grant of Liquefied Natural Gas (LNG) Terminal construction licence, official sources in the Ministry of Petroleum and Natural Resources said.
Around 200 mmcfd (million cubic feet per day) LNG, they said, was being injected in the national system through the terminal to meet the existing energy demand.
"Another two LNG terminals will be established in Sindh and Gwadar and once they complete, the country's gas shortage will overcome," they told APP.
Commenting on the fast-track completion of the first terminal, they said it had been completed in 335 days at a cost of $135 million, which was a record in world's history.
Normally, they said, a terminal takes around three to four years to complete and become operational, but it was the hallmark of the present government to set up the country's first LNG terminal in just 11 months.
They termed the setting up of terminals a 'milestone' in history of the country and expressed confidence that with increased import of LNG, there would be a significant decrease in electricity load-shedding as special focus was being given to
overcome the power shortage.
New LNG power plants, the sources said, were being established, because LNG was 50 percent cheaper as compared to the diesel power generation plants, and it would save over Rs 100 billion annually.
They said importing Qatar LNG at the price of 4.78 dollars per mmBtu was the cheapest of its kind in South Asia, besides it would help meet the country's energy needs by 25 per cent.
The sources said the settled price was 13.37 percent of the brent and was cheaper than the gas to be imported through Iran-Pakistan and Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline projects.
Even, the LNG would be cheaper than Pakistan 's indigenous gas, they added.
"In the next couple of years Pakistan is expected to become a mature LNG import market with few more projects to come online along with natural gas pipeline capacity enhancement projects," the sources remarked.