Pakistan has plans to become a world-leading LNG importer within the next five years, but obstacles in the domestic market could stand in its way. (Photobucket)
Pakistan could be one of the world’s largest LNG importers by the end of the decade. The government has plans for LNG imports – which started in March last year – to rise to 20 mtpa by 2020. This is the same volume China imported last year and which made it the world’s third-largest LNG importer after Japan and South Korea. This massive increase would not only help relieve Pakistan’s energy shortage, it would also represent significant LNG demand growth during a period when new liquefaction projects will continue to ramp up. However, for Pakistan to realise such a staggering rate of growth, obstacles to the offtake of LNG in the domestic market need to be overcome.
Gas accounts for around 50% of Pakistan’s energy market, and the country’s total gas demand last year was around 43 billion cubic metres. This represented growth of around 4% compared with 2014 and was fuelled by LNG imports. The country imported around 1.5 mt of LNG in 2015.
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