Tuesday, June 25, 2024

Pakistan to Begin Construction of LNG Pipeline with Russia Next Year

Pakistan will start building a pipeline of 1,100 kilometres (684 miles) with Russia in July, Bloomberg announced.

This project will allow Pakistan to operate more terminals for liquefied natural gas (LNG), said Petroleum Special Assistant to Prime Minister Nadeem Babar.

A minimum of 51 percent, Pakistan would have a majority stake in the project. Experts familiar with the matter, however, expect this to be at the tune of 74 percent.

The pipeline construction will be carried out by a Russian consortium. In the meantime, Sui Southern Gas Co. (SSGC) and Sui Northern Gas Pipelines Ltd. (SNGPL), Pakistan’s gas distribution companies, have already begun to acquire the necessary pipeline ground.

Local gas production in Pakistan has flattened in recent years, although domestic demand for LNG has also made Pakistan one of the largest importers of super-chilled fuel.

The SAPM announced that in order to promote exploration activity, Pakistan has also auctioned a record 20 oil and gas blocks. The bids are expected by mid-January 2021 for this project, he said.

He also said that Pakistan also plans to add 150 million cubic feet a day of domestic gas production this month in addition to import contracts. From the Mari gas field, this will include 50 mmcfd.

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