Viability of Liquefied Natural Gas (LNG) in Pakistan

Abstract

This paper describes the viability of liquefied natural gas (LNG) for the domestic consumers, although Pakistan has commenced the import of LNG since 2015, but still a gap in supply and demand is constantly increasing. Currently, 1.2 BCF per day of re-gasified LNG is being injected into the gas pipeline network which is basically imported for the power plant sector in Punjab province. Yet the deficit of gas supply and demand is more than 2 BCF per day. The present study of local gas field projections tell that they will lose their strength to 1/3rd by 2025. It can be easily forecasted that by then, other sectors including industrial, commercial and maybe domestic will be forced to consume re-gasified LNG. Survey has been conducted from domestic consumers of Karachi and Hyderabad using a self-developed questionnaire and basic statistical tools are used to achieve the objectives. Findings of the study state that domestic consumers have little trust upon the gas suppliers as well as regulating authority (OGRA) in Pakistan. Domestic consumers have sufficient knowledge of natural gas situation in the country and are satisfied with the government subsidy on the natural gas billing, whereas they are not willing to accept LNG even at billing rate twice the current billing.Keywords: Domestic Consumers, Liquefied Natural Gas, ResourcesJEL Classifications: L95, O13, O38, P18, P43, Q43