Facing acute energy shortages, Pakistan plans to ink multibillion-dollar LNG supply contracts with Nigeria and Algeria
Pakistan is importing 4.5 million tonnes (mt) of LNG per annum and the volume will shoot up to 9 mt before the end of this year.
Projections show that Pakistan will annually need 20 million tons of LNG within three years and 30 million tons in five years.
According to a report carried by Pakistani newspaper The Express Tribune, a draft agreement will be presented in the cabinet for ratification before clinching deals with Nigeria and Algeria for LNG imports, followed by the inking of commercial contracts for implementation of the proposed plan.
Although Nigeria LNG’s production dropped 1.8 mt in 2016, the company has still maintained its position as one of the top five LNG exporters in the world.
According to the International Gas Union’s World LNG 2017 report, Nigeria was one of the top five LNG exporters by share between 2015 and 2016. The order of top five exporters by share is Qatar, Australia, Malaysia, Nigeria and Indonesia.
Algeria’s gas output in 2016 stood at 132.2 billion cubic metres (bcm), up from 128.3 bcm in 2015. Algeria, which is competing with the US and other LNG exporters, is ramping up output in an attempt to defend its market share in Europe.
Japan annually imports 80 mt of LNG whereas India buys 15 million tons because of the commodity’s lower price and efficiency compared to other fuels.
eight months ago, Pakistan had signed a 15-year agreement with Qatar for annual imports of 3.75 mt to meet its growing energy needs as existing natural gas reserves of Pakistan appeared insufficient to bridge the widening demand-supply gap.
The import of LNG has given a new lease of life to some industrial sectors, CNG filling stations, fertiliser plants and power producers, which were earlier sitting idle or operating at low capacities in the absence of gas supplies.
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