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Govt Wants to Improve LNG Terminal Utilization to Prevent Gas Crisis

The government is planning on improving the utilization capacity of the two floating storage and regasification units (FSRUs) at terminals of Engro and Pakistan Gas Port Consortium Limited (PGPL).

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The excess capacity is nearly 330 mmcfd, and it is important to utilize this excess capacity to ensure that there is no shortage crisis in the upcoming winter months, a newspaper report added.

LNG is diverted to the domestic sector during the winter season, which leads to a shortage in gas supply to approximately 3,500 industrial units of non-export industries, fertilizer, and the CNG sector.


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The government held meetings with both Engro and PGPL on Monday. Secretary Petroleum Division Dr. Arshad Mehmood represented the government side. Officials from Sui Southern Gas Company (SSGC), Pakistan LNG Limited (PLL), and Oil and Gas Regulatory Authority (OGRA) also attended the meetings.

Engro’s FSRU that dry docked in June after much upheaval will finally be operational again by August 30. That also means that the government needs to finalize its decision before that happens on whether to retain the existing FSRU Sequoia. If the government decides to retain it, then it also needs to sign a new agreement in that regard before August 30 as well.

However, the decision to reduce the regasification fee of additional capacity can be taken later, the news report added.

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The government’s decision will decide on how much capacity to degasify RLNG will be under consideration. If it decides not to retain the FSRU, which has the capacity of up to 780mmfd, then the older FSRU, with the capacity of 660mmcfd, will replace it.

The government is reportedly trying its best to retain the new unit. The petroleum secretary informed this to the meetings and said that he would try to obtain the required approval for it before August 30 as well.


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He said, “The government wants to utilize the additional capacity of both LNG terminals keeping in view the local gas availability that has tumbled to 2.8 billion cubic feet and maximum capacity to import LNG of 1.2 bcfd.”

He added, “When winter comes, the demand goes up to 5 bcfd or close to it. So the government wants to utilize the additional capacity of both LNG terminals without violation of the laws.”

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