Pakistan’s Gas Demand and Supply Projections indicate a widening gap of approximately 500 MMCFD by the year 2010. The gap starts to emerge in 2007-08 and builds up to 2100 MMCFD by 2015, as the current gas fields gradually go off plateau. Any commitments of additional gas supplies to industries, power or fertilizer plants on a long term basis are therefore not possible, without confirmation of additional sources of gas supply. This may be possible through an import gas pipeline which at the earliest could come on-stream by 2015 as per Gap Coverage Strategy or alternately a major on-shore / off-shore gas field discovery in the current year (the gas to market period being 5 years). A third alternate is the LNG import option which by current assessment will be able to provide gas by the year 2010/11.

To this end GOP has nominated SSGC as the project facilitator for the establishment of 3.5 million tons per annum (mtpa) (equivalent to 500 MMCFD of gas) LNG import project with a re-gasification facility to be located in the vicinity of Karachi.

To date, SSGC and its Consultant have completed a prefeasibility study (the Concept Report) covering business, technical, commercial, legal and other issues concerning LNG import, and have also provided input on Pakistan’s LNG Policy (including an LNG Policy Workshop). SSGC and its Consultant have conducted prequalification of interested Project Developers, and have issued formal Request for Proposals. Proposals (Technical/Commercial/Price) have been received and are being evaluated.