LAHORE: Gwadar GasPort Limited (GGPL), a joint venture between Pakistan GasPort Ltd, Al-Qasim Gas and Jamshoro Joint Venture Ltd has entered into an agreement with Gwadar International Terminals Ltd for the transfer of liquefied natural gas (LNG) to special purpose regasification trucks at different industrial sites throughout the country.
Via an agreement signed at a ceremony, the GGPL will begin engineering work at the current Berth-3 port in Gwadar for the shipping of LNG from a floating storage unit to trucks for shipment across the country to CNG stations, textile mills, fertiliser plants and other major commercial and industrial units.
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The same concept underpinning this ‘virtual pipeline’ wherein no gas pipeline of Sui companies required, and as a result there will be no unaccounted-for-gas as is the case with the two Sui companies, is seamlessly working in countries such as China, Turkey, and India.
Project envisions special purpose trucks to transport gas to consumers across the country
This is a big private sector effort to revolutionise Pakistan’s gas sector, noted Mr. Iqbal Z. Ahmed, Chairman of the GGCL. “With no government off-take guarantee or investment, sales from the private-to-private sector will cut the red-tape and cater to market forces better.” Next winter, he added, the arrangement will help reduce gas shortages.
Since the gap in demand and supply of gas is projected to spiral beyond two billion cubic feet due to rapid urbanisation, ventures in the China-Pakistan Economic Corridor and industrial development, the GGPL-initiated virtual pipeline project will help alleviate the scarcity of brewing gas and also turn the gas market by switching from the current monopoly of Sui companies to a competitive one.
Speaking on the occasion, Captain Dai of Gwadar International Terminals Ltd praised the milestone marked at a modest signing ceremony to carry LNG to the port of Gwadar by using the Chinese-operated port as a hub for deliveries to Karachi and the other major consumption centres in Quetta, Lahore, Peshawar, Sialkot and Faisalabad, following Covid-19 safety measures.
“The port already handles a wide range of commodities, including LPG, fertiliser, cement, grains and more, successfully and safely, and has become a showcase of the $52 billion CPEC,” he said.