Pakistan is all set to get two private Liquified Natural Gas (LNG) terminals in the coming year. The construction of the first private LNG terminal will start in 2021 whereas the construction of the second private LNG terminal will start in the second half of 2021. The decision was taken after the government made it easier for private companies to enter the energy sector.
Officials state that the Oil and Gas Regulatory Authority (OGRA) will issue the license for the construction of the project in a few days as all the other permissions have been granted and arrangements have been made.
A senior official involved in the development said, “A vibrant structural framework is very much in place under which construction work on the first private sector LNG terminal will start by end of the January, whereas physical work on another merchant terminal will commence in the second half of the year.”
The companies owning the terminal will be allowed to import and sell LNG in Pakistan on their own without any say from the government except in a regulatory capacity. Pakistan’s demand for gas is continuously increasing while there is not enough supply for the whole country which needs to be filled through other avenues like the import of LNG. This project is aimed at bridging the gap between the demand and supply of natural gas in Pakistan.
Image Source: Egypt Today
Here’s why COVID-19 mutations shouldn’t scare you