Pakistan has saved around $5 billion over the last five years from Liquefied natural gas (LNG) imports after it substituted the expensive oil imports reported a local media outlet.
The report claims that LNG alone contributes 22% in the country’s energy mix, while its share in Pakistan’s energy imports stands at 24%.
Its price is linked to international crude oil but energy generation through LPG is actually considered much more economical than oil. It also played a significant role in meeting local demands.
Since 2015, over 19 million tons of LNG have been imported, while two LNG re-gasification terminals exist in Pakistan. These terminals have pumped approximately 393.6 billion cubic feet/day (BCFD) of gas into the national gas distribution network in 2019, a 14 percent increase compared with 345.6 BCFD in 2018, the sources said.
In 2019, Pakistan imported 7.57 million tons of LNG through 123 LNG cargo ships versus 108 cargos in 2008.
According to the Oil and Gas Regulatory Authority (OGRA), during 2017/18, the gas supply-demand gap was 1.45 BCFD, but during this fiscal, it could increase to 3.7 BCFD. Imported gas bridged the gap with the supply of 2.5 BCFD.
The report stated that without this alternate source, the gap was forecasted to reach 4.6 BCFD by 2022/23 and then to 6.7 BCFD by 2027/28.