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Viability of Liquefied Natural Gas (LNG) in Pakistan

Author

Listed:
  • Muhammad Sajid

    (Shaheed Zulfikar Ali Bhutto Institute of Science and Technology (SZABIST), Karachi, Pakistan,)

  • Farhan Ahmed

    (Shaheed Zulfikar Ali Bhutto Institute of Science and Technology (SZABIST), Karachi, Pakistan, Shaheed Zulfikar Ali Bhutto Institute of Science and Technology (SZABIST), Karachi, Pakistan,)

  • Shafique Ahmed

    (Sindh Madressatul Islam University (SMIU), Karachi, Pakistan,)

  • Aadil Panhwar

    (United Energy Pakistan, Pakistan)

Abstract

This paper describes the viability of liquefied natural gas (LNG) for the domestic consumers, although Pakistan has commenced the import of LNG since 2015, but still a gap in supply and demand is constantly increasing. Currently, 1.2 BCF per day of re-gasified LNG is being injected into the gas pipeline network which is basically imported for the power plant sector in Punjab province. Yet the deficit of gas supply and demand is more than 2 BCF per day. The present study of local gas field projections tell that they will lose their strength to 1/3rd by 2025. It can be easily forecasted that by then, other sectors including industrial, commercial and maybe domestic will be forced to consume re-gasified LNG. Survey has been conducted from domestic consumers of Karachi and Hyderabad using a self-developed questionnaire and basic statistical tools are used to achieve the objectives. Findings of the study state that domestic consumers have little trust upon the gas suppliers as well as regulating authority (OGRA) in Pakistan. Domestic consumers have sufficient knowledge of natural gas situation in the country and are satisfied with the government subsidy on the natural gas billing, whereas they are not willing to accept LNG even at billing rate twice the current billing.

Suggested Citation

  • Muhammad Sajid & Farhan Ahmed & Shafique Ahmed & Aadil Panhwar, 2018. "Viability of Liquefied Natural Gas (LNG) in Pakistan," International Journal of Energy Economics and Policy, Econjournals, vol. 8(5), pages 146-154.
  • Handle: RePEc:eco:journ2:2018-05-19
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    References listed on IDEAS

    as
    1. Ministry of Finance, Government of India,, 2017. "Economic Survey 2016-17," OUP Catalogue, Oxford University Press, edition 2, number 9780199477661.
    2. Thomas, Sydney & Dawe, Richard A, 2003. "Review of ways to transport natural gas energy from countries which do not need the gas for domestic use," Energy, Elsevier, vol. 28(14), pages 1461-1477.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Domestic Consumers; Liquefied Natural Gas; Resources;
    All these keywords.

    JEL classification:

    • L95 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Gas Utilities; Pipelines; Water Utilities
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • P43 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Finance; Public Finance
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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