Pakistan to Begin Construction of LNG Pipeline With Russia Next Year
Pakistan will start building a 1,100 kilometer (684 miles) pipeline in July with Russia, reported Bloomberg.
This project will allow Pakistan to operate more liquefied natural gas (LNG) terminals, Special Assistant to Prime Minister on Petroleum Nadeem Babar said.
Pakistan will have a majority share in the project, which means a minimum of 51 percent. However, experts familiar with the matter are predicting this to be to the tune of 74 percent.
The construction of the pipeline will be done by a Russian consortium. In the meantime, Pakistan’s gas distribution companies Sui Southern Gas Co. (SSGC) and Sui Northern Gas Pipelines Ltd. (SNGPL) have already started acquiring the required land for the pipeline.
In recent years, Pakistan’s local gas production has flattened out, while at the same time the domestic demand for the LNG has made Pakistan one of the top importers of the super-chilled fuel.
The SAPM informed that Pakistan has also auctioned a record twenty oil and gas blocks to encourage exploration activity. The bids for this project are expected by mid-January 2021, he said.
Pakistan currently has two LNG terminals, which are operating at full capacity to cater to higher demand during winters. The SAPM said that in the next few years, two more LNG terminals, Energas and Mitsubishi’s Tabeer Energy, are expected to start operating in the country.
He also said that in addition to import contracts, Pakistan also plans to add 150 million cubic feet a day of domestic gas output this month. This will include 50 mmcfd from the Mari gas field.