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MoU Signed for LNG Supply to SSGC

NEWS SSGC and United LNG of the USA recently signed a Memorandum of Understanding (MoU) pertaining to the supply of Liquefied Natural Gas (LNG).

The MoU was signed in Houston, USA on December 12, 2012, the second day of the Pakistan Petroleum Exploration Promotion Conference 2012, by Zuhair Siddiqui, MD SSGC and Stephen Payne, Chairman, United LNG.

As per the MoU, Pakistan will also own share in Liquefaction facilities in Gulf of Mexico together with United LNG of USA. In order to ensure firm and continuous supplies of LNG, dedicated ships will be inducted for transportation of LNG to Pakistan.

According to the MoU signed between SSGC and United LNG, the later will supply 4 million metric tons of LNG per year to SSGC.

As per the MoU, Pakistan will also own share in Liquefaction facilities in Gulf of Mexico together with United LNG of USA. In order to ensure firm and continuous supplies of LNG, dedicated ships will be inducted for transportation of LNG to Pakistan.

The ceremony was witnessed by Dr. Asim Hussain, Advisor to the Prime Minister on Petroleum and Natural Resources who was leading Pakistan’s delegation to Houston, USA and London, UK to showcase investment opportunities offered by newly announced Petroleum (Exploration and Production) Policy-2012 to International Exploration and Production Companies.

It is expected that the landed cost of LNG with an inbuilt cap, including transportation and re-gasification cost, the price of gas will be less than the price of Iran-Pakistan Gas Pipeline Project and Turkmenistan-Afghanistan-Pakistan-India (TAPI) Gas Pipeline Project.

As per the MoU, Pakistan will also own share in Liquefaction facilities in Gulf of Mexico together with United LNG of USA. In order to ensure firm and continuous supplies of LNG, dedicated ships will be inducted for transportation of LNG to Pakistan.

Dr. Asim Hussain added after the signing of MoU that the import of LNG will supplement the efforts of the Ministry aiming at ensuring energy security of the country.

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