The Pakistan government has formed a committee to take policy decision in consultation with LNG terminal developers to utilise their idle capacity.
Idle capacity utilisation of the existing LNG terminals by private companies was granted by the government in July, 2019 but ships could be used by the private sector, due to the monopoly held by the state-run companies.
According to local sources, the private sector has been keen to import LNG but has not been able to do so due to a number of reasons, including the long-term LNG supply contract with Qatar at a higher price.
Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL) are the two state-owned companies that are importing LNG.
The private sector claimed it can import LNG at cheaper rates that the state-owned companies, as it does not have to comply with Public Procurement Regulatory Authority (PPRA) rules and can import the gas at anytime.
The private sector claimed that Pakistan has missed an opportunity, when LNG prices plunged to $2 per MMBtu following the Covid-19 outbreak, by denying them permission to import gas.
Private companies have conducted a study that said LNG prices would remain at around $3 per MMBtu for the next five years and, therefore, they should be allowed to reap benefits of low prices.
