Pakistan Among Fastest Growing LNG Markets in the World

Pakistan joined the list of LNG importers last year and promptly became one of the world's fastest growing LNG markets, according to Shell 2017 LNG report.  The South Asian nation has suffered a crippling energy shortage as demand has risen sharply to over 6 billion cubic feet per day,  far outstripping the domestic production of about 4 billion cubic feet per day. Recent LNG imports are beginning to make a dent in Pakistan's ongoing energy crisis and helping to boost economic growth. Current global oversupply and low LNG prices are helping customers get better terms on contracts.

Pakistan Gas Market Forecast. Source: Platts

Global LNG Market:

Pakistan, Egypt and Jordan together imported 13.9 million tons of LNG, more than the combined increase of 11.9 million tons by the most populous nations of China and India.

The biggest increase in LNG exports in 2016 came from Australia, where exports increased by 15 MT to a total of 44.3 MT. It was also a significant year for the USA, after 2.9 MT of LNG was delivered from the Sabine Pass terminal in Louisiana. Qatar remained the world’s largest LNG exporting country, accounting for around 30% of global trade of 258 MT by exporting 77.2 MT, according to International Gas Union report 2017.

LNG Demand in Pakistan:

Pakistan has been a big consumer of natural gas since the discovery of Sui gas fields in Balochistan in 1952. Sui now accounts for just 6% of natural gas domestically produced in Pakistan. The rest of the 94% comes from gas fields in other parts of Pakistan. Among the various provinces, Sindh is now the biggest producer of natural gas. Demand has risen sharply to over 6 billion cubic feet per day,  far outstripping the domestic production of about 4 billion cubic feet per day.

Pakistan is currently importing 2 million MT (96 billion cubic feet) of LNG and negotiating to secure an additional 3 million MT in long-term contracts by the end of 2017 to supply its new LNG floating terminal due to arrive by December, according to M. Adnan Gilani, chief operating officer with Pakistan LNG Ltd, as reported by Platts.

New supply agreements will increase Pakistan's total LNG contracts total to more than 11 million MT per year, as the country aims to resolve a decade-long energy crisis, driven by growing gas consumption and falling domestic production.

In addition to government-to-government contracts, there are also private and public companies negotiating deals to import LNG. For example, Karachi-based power generator K-Electric is seeking supply for its 900-megawatt, $1-billion Port Qasim Power Station which will start-up in two phases, in mid-2018 and the end of 2019, according to Reuters news agency.

In the longer term, Pakistan aims to allocate a quarter of its LNG purchases to the spot and short-term markets, Pakistan LNG Ltd's Adnan Gilani told Platts. "Initially, our goal is to solve our energy crisis. We have long-term downstream commitments, so we do not mind going to mid-to-long term initially," he said. "Over the course of time, we will be able to cater to our variable non-cyclical demand... and allocate about a quarter of our portfolio to spot and short term. PLL is currently purchasing four cargoes per month on a short-term basis as it awaits the start of new term volumes.

By 2022, Pakistan expects to import 30 million MT (1,440 billion cubic feet) of LNG, according to Adnan Gilani of PLL.

LNG Infrastructure:

There is one LNG terminal currently operational at Port Qasim and 5 more are planned in Pakistan over the next two years to deal with rising volume of LNG imports. New pipelines are planned by South Sui Gas and Northern Sui Gas companies to transmit regasified LNG to various parts of the country to meet demand.

Summary:

Pakistan is among the fastest growing LNG markets, according to Shell 2017 LNG report.  The country has suffered a crippling energy shortage in recent years as demand has risen sharply to over 6 billion cubic feet per day,  far outstripping the domestic production of about 4 billion cubic feet per day. Recent LNG imports are beginning to make a dent in Pakistan's ongoing energy crisis and helping to boost economic growth. Current global oversupply and low LNG prices are helping customers get better terms on contracts.

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Comment by Riaz Haq on December 16, 2018 at 7:25am

How America Broke #OPEC With New #Technologies. #American output is rising at the fastest rate in a century. Earlier this year the U.S. eclipsed #SaudiArabia and #Russia as the world’s largest #oil producer. #fracking #deepwater drilling https://www.wsj.com/articles/how-america-broke-opec-11544831785 via @WSJOpinion

U.S. crude production has surged 20% in a year and nearly tripled in a decade thanks to advances in hydraulic fracturing and horizontal drilling. American output is rising at the fastest rate in a century. Earlier this year the U.S. eclipsed Saudi Arabia and Russia as the world’s largest oil producer.

For nearly six decades OPEC has dominated oil markets by setting production quotas among its 15 members. In late 2014, OPEC flooded the market with oil in an effort to break U.S. drillers who were burning cash on mounds of debt. As oil prices fell below $40 a barrel in 2015-2016, many wildcatters folded or were absorbed by larger producers.

But the survivors became more efficient. Technology—including drones with thermal imaging to detect leaks along with improvements in horizontal drilling—boosted productivity. Over the last five years production per rig has more than tripled in the Permian Basin and quadrupled in North Dakota’s Bakken Shale. While the Bakken rig count has fallen by 70%, output has increased by a third.

Most American oil refineries have processed heavier crudes, which depressed prices for lighter, sweeter grades produced in the new wells. But in late 2015 the GOP Congress expanded shale-oil’s market by lifting the export ban on crude in return for Barack Obama’s demand to extend renewable energy tax credits. U.S. crude exports have since soared to 3.2 million barrels a day.

Many U.S. producers say they can turn a profit at $50 a barrel and even as low as $30 in the Permian’s most productive regions. Yet most OPEC members need prices ranging between $70 and $90 per barrel to balance their budgets. The cartel scaled back output in 2016, but shale producers roared back as prices recovered. America’s shale gusher has presented a quandary for OPEC and especially its largest member, Saudi Arabia, which faces large budget deficits as it works to contain Iranian influence in the Middle East.

Earlier this year, the Saudis obliged President Trump by increasing output to prevent prices from soaring with the reimposition of U.S. sanctions on Iran. Even so oil prices hit a four-year high in early October. But they have since declined 30% amid weakening world economic forecasts, sanctions exemptions and surging U.S. production.

OPEC and Russia last week agreed to scale back production collectively by 1.2 million barrels a day, but the meeting exposed the cartel’s cracks. Qatar quit amid hostilities with the Saudis. Small producers carped they were too insignificant to affect global supply. Algeria produces one million barrels per day, which is as much as U.S. output has increased in five months.


Saudi Arabia, Russia and allied producers agreed to shoulder the bulk of the cuts while Libya, Iran and Venezuela received exemptions. Some in the media claim the Saudis defied Mr. Trump’s pleas to keep oil prices low, yet U.S. shale producers are likely to benefit from OPEC’s cuts by capturing more market share.

One of the biggest constraints on U.S. production has been a distribution bottleneck. Hence West Texas Intermediate now sells at a $8 to $9 discount to Brent crude on the world market. But next year three pipelines capable of delivering two million barrels of Permian crude to the Gulf Coast are expected to come online. In 2020 two more pipelines that can carry two million barrels a day are expected to be completed.

Oil companies are also racing to build more export terminals to handle the supply gusher, which isn’t likely to stop anytime soon. The U.S. Geological Survey reported recently that the Permian’s Delaware Basin holds more than twice as much oil and 18 times as much natural gas as the heavier-drilled Midland region.

Comment by Riaz Haq on March 6, 2019 at 10:19am

#Pakistan #LNG #demand could triple over next 3-5 years Last year LNG imports were 7 tons of LNG. This year, that could grow to as high as 15 million tons and to up to 25 million to 30 million tons over the next 3 to 5 years. #energy #oil #gas #economy https://energy.economictimes.indiatimes.com/news/oil-and-gas/pakist...

SINGAPORE: Pakistan's demand for liquefied natural gas (LNG) could more than triple in the next three to five years, the chief executive of Pakistan LNG said on Wednesday.

Last year, Pakistan imported nearly 7 tonnes of LNG, data from Refinitiv Eikon shows. This year, that could grow to as high as 15 million tonnes and to up to 25 million to 30 million tonnes over the next three to five years, said Adnan Gilani, managing director and chief executive of Pakistan LNG.

Pakistan LNG is a state-owned company that buys LNG from the international market to supply to the domestic market.

Both of the country's existing LNG terminals are currently nearly fully utilised. Another two are expected to announce a final investment decision this year.

Pakistan's two import terminals have a regas capacity of 1.2 billion to 1.3 billion cubic feet of gas per day, or about 9 million to 10 million tonnes of LNG a year, according to Gilani's presentation at the LNGA 2019 conference in Singapore.

Pakistan is expected to negotiate a few more long-term contracts to import LNG into the country, Gilani said.

Pakistan is facing a serious energy crisis with repeated blackouts and gas supply outages that led to the sacking of the heads of two of its main gas distribution utilities in January.

March 6, 2019 at 10:16 AM

 Delete

Comment by Riaz Haq on April 26, 2019 at 7:07am

#Qatar emerges as front-runner for long-term #LNG deal for #Pakistan, one of the world’s fastest growing LNG markets. Pakistan is seeking long-term supply contracts for second LNG terminal, which can receive 600 million cubic feet per day of natural gas. https://reut.rs/2IHTHzT

Qatar has emerged as the front-runner for a long-term gas supply deal to Pakistan, a senior Pakistani official said on Friday, with the cabinet of Prime Minister Imran Khan set to decide in the coming weeks on an agreement.

Pakistan, with 208 million people, is running out of domestic gas and has turned to liquefied natural gas (LNG) imports to alleviate chronic energy shortages that have hindered its economy and led to a decade of electricity blackouts.

Qatar is already Pakistan’s biggest gas supplier after signing a 15-year agreement to export up to 3.75 million tonnes of LNG a year to the South Asian country. That 2016 deal supplied Pakistan’s first LNG terminal.

Emerging as one of the world’s fastest growing LNG markets, Pakistan is looking to secure a long-term supply contracts for its second LNG terminal, which can receive 600 million cubic feet per day (mmcfd) of natural gas.

Pakistan has already signed a five-year import deal with commodity trader Gunvor and a 15-year agreement with Italy’s Eni, but is seeking long-term agreements for about 400 mmcfd.

Pakistan has been negotiating with eight countries with whom it has signed inter-governmental agreements in recent years, including Qatar, Russia, Turkey, Italy, Oman, Azerbaijan, Malaysia, and Indonesia. A Saudi Arabian delegation representing state-owned Saudi Aramco has also shown interest in a gas deal.

The senior Pakistani official told Reuters that state-run Qatargas put forward the lowest bid for a long-term LNG supply contract that would have a price review after five or 10 years.

“Qatar has offered the lowest price,” said the official, declining to say the amount of LNG or the price offered by Qatar.

Pakistan’s cabinet is in the next week or two expected to decide if it will proceed with a government-to-government deal, when it will also decide on the size, he said.

Cash-strapped Pakistan is most likely to go with the cheapest supplier, in this case Qatar, officials have said. However, the government may choose more expensive rates to bolster its relations with a chosen country.

Khan’s cabinet could also choose to put out an open tender for long-term agreements, said the senior official. However, some energy officials believe direct government-to-government deals could offer better rates than tendering.

The Pakistani official added that Saudi Aramco may sign a long-term supply deal with Pakistan, potentially also providing some of the 400 mmcfd available at the second terminal. (Reporting by Drazen Jorgic; editing by Christian Schmollinger)

Comment by Riaz Haq on July 16, 2019 at 9:56am

Powering #Pakistan. There is enough #coal at #Thar to cater for the #energy needs of the nation for two centuries. Imported #LNG #gas costs about 40% higher than Synthetic Natural Gas (#SNG) produced from Thar Coal. #power #electricity https://www.pakistantoday.com.pk/2019/07/15/powering-pakistan/#.XS3...

BY DR FARID A MALIK 

Pakistan is finally on the world Coal Map. On July 08, 2019 power generated from Thar Coal entered the national grid; electricity is now being produced by combustion of the local Lignite. At 175 billion tons this is one of the largest coal deposits of the world. The coalfield is spread over 9,000 square kilometers. It was discovered in 1996 by a joint investigation of Geological Survey of Pakistan (GSP) and United States Geological Survey (USGS). It is an important milestone, now that power can be generated by using indigenous fuel. Currently I am working on building an energy system based on this coal by using 21st century technologies.

In 1952 another important event took place when natural gas was discovered at Sui. With 12 trillion cubic feet (TCF) this was the largest deposit of its time. The Government of Pakistan (GoP) established a joint venture company called Pakistan Petroleum Limited (PPL) that pumps out gas from this resource. Two public sector companies distribute gas across the country. Sui Northern Gas Pipelines Limited (SNGPL) brings gas upcountry to Punjab and KP while Sui Southern Gas Company (SSGC) covers Sindh and Balochistan. The pipeline is spread over 20,000 kilometers, it is a state of the art system designed and built by local expertise. For fifty years (1952 to 2002) the energy needs of the nation were catered for by this source. Unfortunately due to misuse and mismanagement the resource has been depleted before its time. It is down to 2TCF now. Gas is being imported from Qatar to meet the shortfall of about 2000 mmcfd. The price of this imported gas at $11.4 per mmbtu is unaffordable. In the US this gas is sold at $3 per mmbtu.

Sui Gas was the energy gift of the founding fathers of Pakistan while Thar is our contribution to the coming generations which will long be cherished and utilised

There is enough coal at Thar to cater for the energy needs of the nation for two centuries. This resource can power Pakistan to prosperity. Mining of coal was the major challenge which has been overcome by a joint venture company formed by ENGRO and Government of Sindh (GoS) called SECMC (Sindh Engro Coal Mining Company). Coal is mined and then delivered at site to a power generation company called ENGRO Powergen Thar.

As Chairman Pakistan Science Foundation (PSF), I started working on the development of Thar Coal in 2004. In August 2018, after 14 years I stood at the bottom of the mine to touch the black gold for the first time. It was a dream come true. Sui Gas was the energy gift of the founding fathers of Pakistan while Thar is our contribution to the coming generations which will long be cherished and utilised.

No nation can prosper without covering its energy needs. Imported fuel cannot ensure sustainability. Rising costs of power and gas have substantially increased the cost of production rendering our exports non-competitive. The fuel advantage that we once had no longer exists. The black gold at Thar can revive the much needed competitiveness. Coal is being mined in Block II by SECMC while a Chinese consortium has started to dig in Block I. Thar Coal Energy Board (TCEB) has thus far demarcated 14 blocks for exploration.

Imported Liquefied Natural Gas (LNG) costs about 40% higher than Synthetic Natural Gas (SNG) produced from Thar Coal. Above ground gasification after mining is an established technology. There are several plants in Germany, South Africa, China and the US where coal is being used to produce multiple products that include; gas, fertilizer, diesel and chemicals. Pakistan can benefit from this know how that already exists.

Comment by Riaz Haq on July 19, 2019 at 4:16pm

#Italian, #Chinese major petroleum companies vie in #Pakistan's mega #LNG tender worth $5 billion to $6 billion. Pakistan to be a big growth driver in global LNG demand. Wood Mackenzie estimates the country will need 25 million tonnes a year. #energy #gas https://reut.rs/2LB7SbJ

Eni and PetroChina’s Singapore unit were joined by the trading arm of Azeri state oil company SOCAR and commodities trader Trafigura in placing offers, the sources said.

Pakistan LNG, the state-owned company that issued the tender, declined to name any bidders.

“The technical bids for our long-term LNG supply tender were received and opened yesterday. Evaluations are underway,” it said.

SOCAR Trading SA confirmed it had bid. Trafigura said it does not comment on tenders. A spokesperson noted Trafigura was a stakeholder in the terminal due to receive the tendered LNG.

“Trafigura owns 150 (million cubic feet a day) of LNG import capacity in that facility, which is key to its plan to supply LNG and gas to Pakistan’s private sector,” the spokesperson said.

Comment by Riaz Haq on October 5, 2019 at 7:09pm

Pakistan energy consumption 85 million tons or 623 million barrels of oil in 2018

https://worldview.stratfor.com/article/pakistan-strives-switch-natu...

Pakistan will continue to shift its economy from oil to natural gas, a cleaner and less expensive option.


The government's wide-ranging campaign against graft, and other problems like debt and energy bottlenecks, will likely complicate future Pakistani LNG terminal projects.
Nevertheless, its energy transition will drive demand for increased LNG imports, creating investment opportunities.

As it looks to quench its economy's growing thirst for energy, Pakistan has turned to several multinational companies for an ambitious expansion of its liquefied natural gas terminals on the Arabian Sea. On Sept. 20, Petroleum Minister Omar Ayub Khan said Pakistan had chosen ExxonMobil, Trafigura, Royal Dutch Shell, Gunvor Group and Tabeer Energy to build five LNG facilities. Ayub's announcement touches upon a broader plan to boost the country's LNG processing capacity while shifting its economic reliance away from oil. With a shortfall in domestic production expected to persist even as power demand climbs, Pakistan's appetite for natural gas for electricity generation will drive ever-more LNG imports over the next few years. And though some might hesitate to invest in Pakistani LNG lest local partners run afoul of a far-reaching (and allegedly politically motivated) anti-corruption campaign, the growth of the country's LNG demand creates major opportunities for international energy companies looking to capitalize on one of Asia's fastest-growing markets.

Natural gas is Pakistan's most important source of energy. The country's energy consumption last year met the equivalent of 85 million metric tons of oil in total; natural gas accounted for the biggest share at 44 percent, outpacing oil and coal combined. Natural gas is a critical input in Pakistan's economy for numerous industries, including the power generation, commercial, fertilizer and transport sectors, among others. For Prime Minister Imran Khan's government, using more natural gas serves a broader purpose as well: lessening the country's reliance on furnace oil, a more expensive energy source per unit that inflates the import bill, especially when dollar-denominated oil prices rise (of course, LNG is also denominated in dollars, but its price per unit is generally cheaper). And given the country's slow climb out from its latest balance of payments crisis — which exacerbated the rising energy bill, forcing Islamabad to seek a $6 billion loan from the International Monetary Fund (IMF) in July — the government has a strong incentive to ease its dependence on oil.

Despite the clearly growing importance of natural gas to Pakistan's economy, supply is failing to keep pace. Through the fiscal year ending in June 2020, the country's petroleum regulator has forecast a shortfall of 104.7 million cubic meters (mmcm), or 3.7 billion cubic feet, per day — more double last year's deficit. The addition of 700,000 consumers to the overall consumer base of 9.6 million over the past year partly accounts for an uptick in demand, which increases during winter. But the shortfall — estimated at an equivalent 2,000 megawatts of electricity — sheds light on fundamental problems in the energy sector involving distribution, transmission and circular debt. A reliance on burning more expensive furnace oil to drive generators forces the government to offer subsidies to power companies. However, the failure of the cash-strapped government to actually pay these subsidies creates a cascading effect throughout the power supply chain as each customer is unable to pay its suppliers, leading to load-shedding, which greatly limits business activity.

Comment by Riaz Haq on December 20, 2019 at 10:57am

#China Bids Lowest #LNG Price to #Pakistan Amid Massive #Gas Glut In #Asia. PetroChina International Singapore Quotes 8.594% of Brent oil contract for a delivery on February 16-17, 2020. #energy | OilPrice.com https://oilprice.com/Energy/Gas-Prices/China-Dumps-LNG-Amid-Massive... #oilprice

PetroChina, one of the largest buyers of liquefied natural gas (LNG) in the key LNG demand growth market, has offered the lowest bid in an LNG tender in Pakistan, in a sign that the Asian market continues to be oversupplied even after the winter heating season began.

According to the documents from the latest Pakistan LNG tender, PetroChina International Singapore offered the lowest bid at a price slope—that is a percentage of the Brent oil contract—of 8.594 percent, for a delivery window on February 16-17. PetroChina beat commodity traders Gunvor and Trafigura and the trading arm of SOCAR to the lowest bid in the Pakistani tender.

It’s not certain if Pakistan will award this tender, because it sometimes chooses not to buy. But the fact that China is offering LNG so cheaply points to the persistent LNG glut on the Asian markets.

According to Bloomberg, this was at least the second time in which PetroChina has offered the lowest bid in an LNG tender in Pakistan.

This year, Asian spot LNG prices are at their lowest ever for this time of the season.

Last week was the first week since October in which spot LNG prices in Asia increased week on week. Asian LNG spot prices for delivery in January rose to US $5.65 per million British thermal units (MMBtu) last week, up by 15 cents from the previous week, trading sources told Reuters.

Still, prices were at their lowest for this time of the year, because of ample LNG supply and tepid demand growth with milder weather earlier in the heating season.

While the lower LNG prices create some demand in India, for example, overall demand in Asia this winter is certainly not growing at the record-breaking pace of the past three years. The reason—supply is more than enough, as new volumes continue to come out of the U.S., Australia, and to an extent, Russia.

Last month, a Singaporean buyer of a U.S. cargo of LNG canceled the loading, as both Asia and Europe are facing an LNG glut. Some other customers of U.S. LNG cargoes are also reportedly considering paying for those cargoes but not loading them, traders have told Reuters.

By Tsvetana Paraskova for Oilprice.com

Comment by Riaz Haq on February 3, 2020 at 4:47pm

Low prices to whet #Pakistan #LNG appetite; #infrastructure poses challenges. Since Pakistan first started importing in 2015 -- imports rose to 8.4 million mt in 2019 from 6.8 million mt in 2018. #energy S&P Global Platts https://spglobal.com/platts/en/market-insights/latest-news/natural-...

https://twitter.com/haqsmusings/status/1224492778370945024?s=20

Platts Analytics expects modest growth in inflows in 2020

JKM has fallen more than 40% since the beginning of 2019

No new regasification capacity to be commissioned this year

Pakistan may take advantage of low spot prices and boost LNG imports in 2020 to meet the country's growing demand for fuels amid declining output at home, but infrastructure constraints mean the South Asian country will only post a modest growth in inflows, analysts told S&P Global Platts.

With Pakistan turning out to be one of the fastest growing LNG markets since it first started importing in 2015 -- imports rose to 8.4 million mt in 2019 from 6.8 million mt in 2018 -- there was an urgent need to speed up import capacity expansions, which have been planned in order to absorb incremental inflows, they added.

"Pakistan represents a market that could take advantage of the low spot price environment and import more LNG to feed its growing natural gas demand. However, imports are close to capacity and have limited ability to grow significantly," said Jeff Moore, manager, Asian LNG Analytics, at Platts Analytics.

He added that Platts Analytics expects only a modest growth in imports in 2020 from 2019 levels.

"The underlying driver for LNG consumption growth in Pakistan has been a declining base of domestic production along with new import infrastructure, as the country has brought in two FSRUs, both at Port Qasim," Moore said.

The benchmark for spot Asian LNG prices, JKM, has fallen more than 40% from the beginning of 2019 to about $5.20/MMBtu by the end of the year due to a wave of new supply from Australia and the US, and slowing demand growth in China.

Meanwhile, the DES West India assessment, which is a relatively better reflection of prices in the Indian subcontinent, was lower by more than 41% from the beginning of last year at $4.80/MMBtu toward the end of 2019.

The spot Brent slope, which is obtained by dividing the Brent crude oil price by the spot LNG price, also declined last year, prompting Pakistan LNG Ltd. to issue fresh tenders to seek cargoes at lower Brent slope prices. The average spot Brent slope also dropped, to 8.70% in 2019 from 13.70% in 2018, Platts data showed.

"Although Pakistan represents an important market with an appetite to increase imports given the expectation for low JKM prices this year, the scope to grow imports sharply is limited in 2020," Moore said.

New wave of capacity expansion
Platts Analytics forecasts LNG imports to pick up to 12.4 million mt in 2021 if Pakistan can bring in another floating storage and regasification unit relatively quickly, and imports are expected to exceed 17 million mt by 2025. This will help underpin growing gas demand as well as offset declining production.

Pakistan is now moving toward the next phase of LNG import capacity expansion with government approvals for five new terminals, while also taking steps to further liberalize its natural gas sector through third-party access to distribution infrastructure.

According to government officials, the private sector has recently been allowed to set up five more LNG terminals, in addition to the two FSRU-based import facilities in operation.

"The broad trend is that Pakistan's gas demand in the next couple of years will be driven by the power sector," said James Waddell, senior global gas analyst at Energy Aspects.

Comment by Riaz Haq on February 7, 2020 at 11:10am

#Pakistan, emerging as #American #LNG #gas #export market, looks to #Houston to help jump start #economy. Cheniere Energy of Houston has become the first company in the continental United States to export LNG to Pakistan https://www.houstonchronicle.com/business/energy/article/Pakistan-e...(Premium)&utm_source=t.co&utm_medium=referral

Battered by security threats, government corruption and unreliable energy for decades, Pakistan has struggled to unleash its economic potential. But with new leadership attempting to launch the country onto the world stage, Pakistani leaders say they’re looking for a little help from Houston.

Pakistan’s U.S Ambassador, Asad Majeed Khan, said in an interview that the energy capital of the world contains two key ingredients his country is looking for to jump start its economy: reliable energy and Pakistani Americans.

“Of course, it impresses me that we have a substantial community of Pakistani Americans (in Houston),” said Kahn, who visited the city last week for a conference hosted by the American Pakistan Foundation. “But what is important is that they are all contributing to the economy of Houston and are influential and successful.”

Houston has the third largest population of Pakistanis in the U.S., according to Pew Research Center, following New York and Washington D.C. Pakistanis living abroad are important to the country’s ability to attract foreign investment, Khan said, but Pakistan may have something to offer Houston, too. Pakistan is emerging as a potentially huge market for U.S. energy exports, particularly liquefied natural gas, as it attempts to stabilize and secure its economic future.

“The convenience of its use, its environmentally friendly use, and also the rates, I think make LNG an attractive option for Pakistan,” Khan said. “There is huge demand.”

Market for natural gas
LNG prices are particularly low these days due to abundant supplies and slipping demand, in part a result of mild winters in much of the world and the impact of the coronavirus on the Chinese economy. Large supplies of gas in Texas shale deposits and increasing demand for cheap, cleaner burning fuels spurred Houston-area companies to look abroad for customers.

A few years ago, Cheniere Energy of Houston became the first company in the continental United States to export LNG.

Pakistan needs cheap, reliable energy that can easily integrate with existing pipelines, storage terminals and other infrastructure. Because the country has depleted much of its compressed natural gas reserves, and sanctions on Iran have reduced natural gas imports, the country is beginning to import LNG from the United States.

“As they are trying to become a more politically stable country looking for economic progress, they are going to need a lot more energy,” said Ramanan Krishnamoorti, chief energy officer at the University of Houston. “LNG might be that real game changer for them.”

Pakistani Prime Minister Imran Khan faces a steep climb, though. Around 52 million Pakistanis did not have access to electricity in 2017, and more than half of the population uses biomass, including wood and animal waste, for cooking due to natural gas and electricity shortages. Natural gas accounted for 21 percent of the nation’s total energy consumption in 2017, according to the International Energy Agency, but biofuels and waste accounted for 37 percent.

Comment by Riaz Haq on November 18, 2020 at 6:26pm

#Pakistan, #Russia agree to raise #Islamabad’s share in equity of NSGP to 76%. Planned 1,100 Km North-South Gas #Pipeline from #Karachi will transport 1.6 billion cubic feet of re-gasified #LNG per day with a diameter of either 52 inches or 56 inches. https://nation.com.pk/19-Nov-2020/pakistan-russia-agree-to-increase...

Earlier, it was planned that the entire project will be executed with Russian funding, but after Supreme Court decision on the GIDC, the government of Pakistan has decided to provide maximum funding to the project. Now it has been decided that Pakistan’s share in the equity will increase to 76 percent while the Russian share will be 24 percent, said the source. Similarly, initially it was proposed that the pipeline of 1,100 kilometres was to be laid with a diameter of 42 inches with capacity to transport 1.2 billion cubic feet RLNG per day, however now Pakistan wants to increase of the pipeline to 1.6 bcfd with a diameter of either 52 inches or 56 inches.

The Russian delegation comprised of representatives from Ministry of Energy of Russian Federation, Embassy of Russian Federation in Pakistan and other Russian companies and corporations. The Pakistani side included representation from Ministry of Energy (Petroleum Division) of Pakistan, Ministry of Foreign Affairs, and Law and Justice Division and Inter State Gas Systems (Private) Limited. The talks were also attended by Minister for Energy and Special Assistant to Prime Minister on Petroleum.

--------


Pakistan and Russia have agreed to increase Islamabad’s share in the equity of North South Gas Pipeline (NSGP) (renamed to Pakistan Stream Gas Pipeline) to 76 percent while Moscow will fund 24 percent.

Similarly, it has also been agreed to rename the project from North South Gas Pipeline Project to Pakistan Stream Gas Pipeline (PSGP) Project.

The final approval to the proposed amendments in the inter-governmental agreement (IGA) on North South Gas Pipeline (NSGP) will be given in the 8th session of Pakistan-Russia JCC on NSGP project in December, official source told The Nation.

The Ministry of Energy (Petroleum Division) of Pakistan and Ministry of Energy of the Russian Federation held first Russia-Pakistan Technical Committee meeting from 16th to 18th November 2020 here on mutual cooperation for the development of North South Gas Pipeline Project.

Both sides agreed to sign a protocol for amendment in the Inter-Governmental Agreement (IGA) earlier signed in 2015 between both the governments to reflect the revised implementation structure of the project after requisite approvals from respective governments. The parties agreed in principle to implement the project through a special purpose company to be incorporated in Pakistan by Pakistan and Russian parties, wherein Pakistan will have the majority shareholding.

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    Independent candidates backed by the Pakistan Tehreek e Insaf (PTI) party emerged as the largest single block with 93 seats in the nation's parliament in the general elections held on February 8, 2024.  This feat was accomplished in spite of huge obstacles thrown in front of the PTI's top leader Imran Khan and his party leaders and supporters by Pakistan's powerful military…

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    Posted by Riaz Haq on February 16, 2024 at 9:22pm — 1 Comment

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