National News Desk
Islamabad: Pakistan will begin building a 1,100-kilometer (684-mile) pipeline with Russia in July that will enable the South Asian nation to operate more liquefied natural gas terminals.
The South Asian nation will have a majority share of 51% to 74% in the project, while Russia will own the remainder, said Nadeem Babar, Prime Minister’s Petroleum Advisor, in a Dec. 14 interview. Pakistan’s Sui Southern Gas Co. and Sui Northern Gas Pipelines Ltd. gas distribution companies, which have begun the acquisition of pipeline property, will be part of the project, while the Russian consortium will lead the development.
Pakistan has been one of the top emerging markets for super-chilled fuel in recent years as domestic gas demand has flattened, forcing the nation to import cargo. The nation also auctioned a record 20 oil and gas blocks to promote exploration, with bids anticipated by mid-January, said Babar.
Pakistan, which imported its first cargo ship five years ago, now has two LNG terminals. The two terminals operate to meet the peak winter demand, with 12 cargoes secured for December and 11 for January, Babar said. Two more LNG terminals, Energas and Mitsubishi’s Tabeer Energy, are expected to begin in the next few years.
Pakistan has 700 million cubic feet of GNL deals a day and Prime Minister Imran Khan’s government will determine if the nation will need another medium-term GNL contract for five years after evaluating demand from power generators, the largest fuel user, in the next three months, Babar said.
The nation has also announced that it will only import cleaner Euro-5 diesel from January onwards, after doing the same for gasoline earlier this year. In addition to imports, Pakistan is also planning to add 150 million cubic feet per day of domestic gas production this month, including 50 mmcfd from the Mari gas field, Babar said.