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Evolving LNG/RLNG Regime in Pakistan and the National Energy Security
Abstract
With economic growth, the demand for natural gas as a fuel has increased recently, while its supply has seen decrease. The demand is projected to further increase and the country's currently known recoverable indigenous gas reserves are insufficient to meet this demand. Gas shortages have already emerged and shall increase substantially in the following years if indigenous supply is not supplemented through imports. This paper aims to review the regulatory framework of LNG/RLNG for creating enabling environment for import, re-gasification, sale and marketing in Pakistan. The focus of this paper is on the supply side of energy, public and private gas utilities relation with respect to LNG, natural gas market liberalization, and its comparative analysis with other fuel prices. In the short term, without importing LNG to the tune of about 800 - 1.2 MMSCFD, the demand-supply gap of the energy in Pakistan would have been much more than it is today. Irrespective of its price, however, LNG is the only short-term solution in augmenting energy supplies.
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