Pakistan textile industry which is suffering from gas shortage at its manufacturing units has urged the Pakistan’s Ministry of Petroleum and Natural Resources for a share in liquefied natural gas (LNG) usage. Seeking the surge in requirement for LNG in the country, the Government of Pakistan has finalized a US $16-billion LNG deal with Qatar and is looking for the approval of a gas sale-purchase agreement from the Economic Coordination Committee (ECC) prior inking deal with Doha. The Pakistan State Oil (PSO) will import 200 mmcfd(million cubic feet of natural gas per day) of LNG in the first year and 400 mmcfd from the second year.
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The Government has asked Pakistan State Oil to ink deal with Qatar for LNG purchases via ‘open competitive biddings’ or a Government-to-Government contract with certain applicable rules;however, imports of the LNG in the time to come will be done through Pakistan LNG Limited.
Pakistan textile sector has been facing a severe gas shortage for a long time now which is hindering the smooth running of the textile mills and this has affected Pakistan textile exports as well. The current gas production in Pakistan stands at around 4 billion cubic feet per day (bcfd), which is well-below the demand in the country.
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The deal once signed is expected to help the Pakistan textile better it export figures in future to stay competitive in the global market and ahead of its neighbouring nations such as India, Bangladesh, etc.
