Govt to ensure 500 mcfd LNG in SSGC system by next year

Government is all set to ensure the supply of 500 mcfd of LNG in Sui Soutrhern Gas Company (SSGC) system by next year (2012).

“Pakistan has invited expressions of interests (EoIs) from foreign and domestic companies for the supply of 500 million cubic feet per day (cfd) of liquefied natural gas (LNG) for up to 10 years to feed its power sector,” Dr Asim Hussain Minister for Petroleum and natural Resources said while talking to TheNation on Saturday adding,” We have set a target to ensure LNG in SSGC system by the 2nd quarter of next year to meet the country’s soaring demands”.

Energy demand: Shell hesitant to jump into LNG fray

Despite being the largest producer of liquefied natural gas in the world, Shell does not plan on entering the LNG business in Pakistan until the government clarifies several regulatory issues, including pricing and volume guarantees.

Sarim Sheikh, the managing director of Shell Pakistan, a subsidiary of the global energy giant Royal Dutch Shell, said that while the company recognised the business case for LNG imports into Pakistan, the company would need firm commitments from the government on matters such as pricing formulas and guarantees of minimal volume purchases in order to make any investment in LNG imports viable.

SSGC accounts approved

The 52nd Annual General Meeting of shareholders of Sui Southern Gas Company (SSGC) on Monday approved the audited accounts for the fiscal year ended June 30, 2006.

Shareholders unanimously approved the annual audited accounts as presented, which declared 13 percent dividend amounting to Rs1.30 per share of Rs10 for the year under review, a press release issued here said.

Addressing the meeting Chairman SSGC Aitzaz Shahbaz observed that Pakistan’s ‘Mashal’ LNG import project has helped put the country into the world’s LNG radar screen. Sales revenue of the company increased in value over the previous year by 26 percent to Rs68.5 billion with a corresponding increase of 6 percent in gas volume to 359bcf.