Friday, May 24, 2024

Pakistan is getting its first LNG terminal, construction starting in January 2021

In the coming year, Pakistan is all set to get two private Liquified Natural Gas (LNG) terminals. The construction of the first private LNG terminal will begin in 2021, while the construction of the second private LNG terminal will begin in the second half of 2021. The decision was taken after the government made it easier for private companies to join the energy sector.

Officials note that in a few days, the Oil and Gas Regulatory Authority (OGRA) will issue the project building license as all other permits have been granted and preparations have been made.

A senior official involved in the development said, “A vibrant structural framework is very much in place under which construction work on the first LNG terminal in the private sector will begin by the end of January, while physical work on another merchant terminal will begin in the second half of 2021.”

Companies owning the terminal will be permitted to import and sell LNG on their own in Pakistan, with the exception of regulatory power, without the government having any say. The Gas demand in Pakistan is constantly increasing, although there is inadequate supply for the entire country that needs to be filled through other avenues, such as importing LNG. This project aims to bridge the gap between natural gas demand and supply in Pakistan.

Related Articles

Latest Articles