Global News

LAHORE: Is the government ready to benefit from the extremely low prices of Liquefied Petroleum Gas (LNG) in the international market through various short and long-term options?

This is the multi-million-dollar question being asked by various stakeholders as cheap availability of LNG and projection of continuation of this trend has kindled hope of inexpensive natural gas for end consumers.

Robust spot purchases, enhancing import capacity, and creating infrastructure for storing LNG are some of the options for reducing basket price and increasing supplies. A former senior official responsible for LNG imports, who didn’t want to be named, said Pakistan should benefit from low international prices of LNG by robustly buying from the spot market.

Similarly, he added that negotiation for 5-10-year contracts should be initiated as prices might remain low in medium- to long-term. “Every effort should be made to reduce the basket average price as consumers direly needed such solace,” he said.

On setting up of storage terminal for maintaining reserves, not only for making the most of the benefit from low prices, but also to enhance supplies during high winter demand, the ex-official said such initiative would require considerable capital cost.

Ghiyas Paracha, head of CNG Association of Pakistan, said the government should encourage LNG imports through private sector. “This is the only viable option to be competitive in the LNG import sector and ensure availability of least-cost Regasified Liquefied Natural Gas RLNG to end-consumers,” Paracha said.