Two new terminals will need to be built to increase the supply of liquefied natural gas (LNG), according to an oil division report presented to Prime Minister Imran Khan.
The pipeline will be built as soon as possible in accordance with directives issued by the Prime Minister. Local businesses will also be involved in its construction.
The report, submitted by Special Assistant Tabish Gohar, said the pipeline was essential for the smooth and uninterrupted supply of gas to consumers at affordable prices.
The new LNG terminal operators will sign agreements on a firm purchase basis concerning the allocation of gas pipeline capacity following the model of existing LNG terminals.
Lily New LNG contracts sought on the basis of take-or-pay
As part of the government’s new gas sector reform strategy, SAPM stated that the excess gas capacity of 300 million cubic feet per day (MMCFD) of the two existing regasified liquefied natural gas (RLNG) terminals and that additional LNG cargoes would be used to bridge the gap between demand and supply, especially during the upcoming winter season.
In addition, LPG will be used as an alternative fuel to reduce the load on natural gas, the report adds.
It was decided that the LNG storage infrastructure will be built by 2030.
Earlier on Saturday, it emerged that the oil division had made a further U-turn in the new draft LPG policy 2021, as it offered a local LPG price of around $ 80 compared to the international price.