It is since ages that the decision with regard to the pricing of LNG is unsolved. How much should be the pricing of LNG, how much should be the supply of LNG, the Government of Pakistan has failed to take these decisions! Though, when this LNG project was taken by the government of Pakistan then it was considered as a cheaper alternative as compared to the furnace oil. Ogra and Nepra have all the time debated on the issues of the price of LNG.
How much will be the flow of LNG in future?
Now, we have been seeing in future highest LNG flow will be there, it will be about 400 mm cubic feet per day to this 2000 m cubic feet per day basis. Government is not considering this LNG as the cheapest one because they are of this view that LNG has to be re-gasified after it is imported and discharged from the tankers.
Price of HSFO is quite lower than that of LNG
It can be expected that HSFO will be replacing this LNG in all of the power stations. It should be noted that high-speed furnace oil can only come out as a sensible replacement if HSFO will be combined in these gas cycle turbines. In the old times, the government of Pakistan boasted on this aspect that we are offering lowest and cheapest rates of LNG but it is not exactly so! Our rates are higher as compared to the other countries.
- Price of LNG in Pakistan in April 2016 was $ 4.877 MMBtu
- Price of LNG in India in April 2016 was $ 4.05 MMBtu
- Price of LNG in Japan in April 2016 was $ 4.10 MMBtu
- Price of LNG in Korea in April 2016 was $ 4.10 MMBtu
- Price of LNG in China in April 2016 was $ 3.99 MMBtu
The serious concern should be given to this LNG price in Pakistan Liquefied Natural Gas which is still an unresolved agenda here!