Pakistan GasPort Consortium Limited (PGPC) Chairman Iqbal Z. Ahmed has emphasized the growth potential of the LNG market in Pakistan, but stressed the need to ensure prices are at a level affordable for emerging countries.
Appearing at the GasTech Dubai 2012 convention, the world’s largest exhibition and conference for the gas, LNG, hydrogen, and energy industry, he shared that Pakistan had become almost a 9 million on market for LNG since 2016. Noting the demand was still growing, he informed the audience that roughly 50% of the imported fuel was used to generate power.
However, Mr. Ahmed explained, that despite more efficient LNG plants, emerging countries like Pakistan had no choice but to rely on coal or furnace oil due to the hefty prices charged for LNG. “This is challenge that the industry needs to understand and overcome,” he said, urging exporters, LNG producers and larger international players to examine the support they could provide emerging markets to produce affordable energy and achieve development.
“I don’t see any such support forthcoming,” he regretted, while praising Qatar for inking two long-term contacts with Pakistan for about six cargoes a month. “But Pakistan needs almost 14 cargoes a month,” said the PGPC Chairman, calling on the LNG community to examine how the sector would proceed in the next 10 years. “Investment in the power sector would be largely dictated by the availability of LNG at affordable prices,” he emphasized, warning that otherwise investment would shift to coal or furnace oil.
Mr. Ahmed urged market leaders to guide Pakistan as to where the industry should proceed. “The demand is out there, the supply chain is out there,” he said, noting Pakistan was investing $2.5 billion in a south-to-north pipeline but needed affordable fuel to justify the costs.