Clarification - Confusion as imported LNG due next month

Karachi-February 26th, 2015 Apropos the news article titled "Confusion as imported LNG due next month" published in "Dawn" on 23rd February, 2015; Pakistan State Oil (PSO) would like to categorically state that, negotiations for import of LNG are still underway. No contract has been signed as yet and nor is any vessel containing LNG on its way to Pakistan.  

The import of Liquefied Natural Gas (LNG) shall take place under Government to Government (G to G) arrangement. Each respective government in dialogue has appointed a company to carry out negotiations. The Government of Pakistan (GoP) has nominated Pakistan State Oil (PSO) to engage in negotiations regarding procurement of Liquefied Natural Gas (LNG with government nominated entities from multiple countries including Qatar Gas.). As a financially stable and credible company, PSO’s role in the LNG project shall be to import/open LCs for procurement of LNG.

Once the LNG reaches Pakistan, regasification will take place and it will be inserted into the SUI system. The LNG will mix with the natural gas present in the system and shall be ready for onward distribution. The gas companies shall carry out implementation agreements with consumers and the company supplying LNG for facilitating the regasification process.

Pakistan currently faces a gas deficit of 4 BFCD which is expected to increase to 8 BFCD in the near future. LNG is a cheap and clean source of energy whose import will provide relief to industrial consumers and help drive the growth of the national economy. LNG will also replace the usage of expensive Furnace Oil and Diesel by the power sector to help generate cheap electricity.