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Pakistani companies in LNG talks with Gail (India) Ltd.

LNG Industry,

Energy companies in Pakistan are set to buy more than the 5 million m3/d of liquefied natural gas LNG from GAIL (India) Limited they had previously intended on purchasing. In a meeting between representatives of Gail and those of Pakistani energy corporations, it was decided that, in a bid to build more LNG plants, the companies in Pakistan would need more supply from India.

Prabhat Singh, director of marketing at Gail, said: “We may end up supplying more LNG to Pakistan as representatives of Pakistan's private power and energy companies told us they need more LNG. They are planning new power plants in Pakistan, so the 5 million m3/d volume decided earlier could now be increased.”

The LNG will be transported to Pakistan through the anticipated 110 km pipeline from Jalandhar to Lahore.

Once an agreement has been understood between the governments of India and Pakistan, Singh said that Gail could provide more LNG to Pakistan through the Pakistani state gas firm, Inter State Gas Systems.

Singh said that the Pakistani companies are seeking a reduction the price Gail proposed of around $22 million Btu: “the Pakistani’s are negotiating for a lower price of around $18 million Btu. They are also seeking some tax exemptions."

Edited from various sources by Ted Monroe

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