KARACHI - Pakistan has signed a memorandum of understanding (MoU) with the government of Qatar for the import of 500 million cubic feet of Liquefied Natural Gas (LNG) per day.
This was said by Prime Minister Yousaf Raza Gilani while inaugurating the Rs 2.55 billion LPG terminal at Port Qasim on Saturday.
“I am happy to inform you that during my recent visit to Qatar, Pakistan concluded a memorandum of understanding with the government of Qatar for the import of 500 million cubic feet of LNG per day,” the prime minister said at the inaugural ceremony.
To be imported through SSGC-LPG Terminal, the imported LNG would be provided to power houses to generate 2,500 megawatts of power, Gilani said.
Criticising the previous successive government for their failure to give due focus to the energy sector, the prime minister said key mega projects undertaken by his government to meet the energy demands included Diamer-Basha Dam, Thar Coal Power Project, TAPI project and CASA-1000 in addition to dozens of small and medium-sized dams across the country.
Pakistan was also committed to Iran-Pakistan gas pipeline project, which would help the country overcome its energy problem to a large extent.
“The implementation of these mega projects will not only enhance overall energy supplies, provide energy diversity but also lead to a greater energy security,” he said.
Despite economic constraints imposed by natural disasters, energy deficits, global recession and the war on terrorism, the fundamentals of Pakistan’s economy were showing positive signs, he said.
The prime minister said given the size and diversity of Pakistan’s economy, the country’s total energy requirements were expected to grow substantially during the next decade.
“It is in this context that achieving self-sufficiency is a key factor to keep the engine of economy running as well as meeting the future demands of the economic growth.”
According to the PM, Pakistan was meeting 53 percent of its total energy requirements through indigenous oil and gas production, whereas other indigenous resources further meet 19 percent of the country’s energy needs.
The remaining 27 percent of the energy needs were currently being met through imports, he said. “The energy imports are likely to increase as domestic gas production and supply presently fails to meet the demand of the domestic users, the industrial sector and power generation,” he said, adding that due to their all-pervasive use by these sectors, the country’s gas reserves may be insufficient to meet the rising demand.
“Such a situation will force the country to resort to importing large volumes of gas at international prices to feed the domestic market if local production is not enhanced in relation to demand,” the PM said.