SHAFAQNA PAKISTAN (Shia News Agency)
Pakistan on last Friday signed an agreement with Qatar for the import of Liquefied Natural Gas (LNG) in order to reduce the cost of power generation. Talking to media representatives in Islamabad, Federal Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi said that” the first shipment of LNG will reach Pakistan by the end of March.” Under the terms of the agreement, Qatar will supply Pakistan with 500 million cubic feet per day (mmcfd) of LNG under a pricing formula that translates to a current price of LNG of $ 7 per million British thermal units (mmbtu), a price lower than that paid even by Indian importers, who are currently paying close to $ 9-10 per mmbtu. This offer will really help alleviate the energy crisis caused by the gas shortfall in the country. The gas shortfall increases during the winter season when domestic consumers face load shedding of this utility in their homes. After the finalisation of the LNG deal, Pakistan needs to set up a proper system for injecting LNG into the national gas grid to fully transfer its benefit to the general public. There should be proper arrangements for the safe transportation as well as the distribution of LNG to various parts of the country. Besides taking benefit from these incentives, there are huge prospects of trade between Pakistan and Qatar. Presently, the volume of bilateral trade is $ 300 million per annum that is below its potential and needs to be increased. Qatar can be an ideal market for the consumption of Pakistan’s food products. Through proper marketing and exporting quality fruits and vegetables to Qatar, Pakistan can increase its export income.
After importing LNG from Qatar, it is hoped that Pakistan’s energy crisis would be reduced to some extent. Though Pakistan has greater advantage of peace pipe line with Iran that could have reduced to cost to a greater extent but due to US and Saudi Pressure Pakistan could not pursue that deal. However it is good initiative by the government to curb the huge energy deficit that is haunting Pakistan since long.
pakistan.shafaqna.com
