- Pakistani company inks LNG import deal with ExxonMobil, first shipment likely next month
Pakistani Company Inks LNG Import Deal With ExxonMobil, First Shipment Likely Next Month
Faizan Hashmi 1 month ago Wed 18th September 2019 | 08:23 PM
Universal Gas Distribution Company (UGDC), a private sector company of Pakistan, Wednesday signed a deal with the world's leading oil and gas company ExxonMobil for private import of Liquefied Natural Gas (LNG), under which first vessel carrying the commodity is likely to arrive the country next month
"After the agreement, the first shipment of LNG is expected by the next month which will change the entire gas landscape in Pakistan," Chief Executive Officer (CEO) of UGDC Abdul Ghiyas Paracha, who is also a senior leader of APCNGA, said in a press release received here from Houston, US.
The agreement was signed by President ExxonMobil Richard Rayfield and UGDC CEO Ghiyas Paracha on the sidelines of a three-day 'Gastec-2019' conference and exhibition being held in Houston from September 17.
According to the press release, Special Assistant to Prime Minister on Petroleum Nadeem Babar, Chairman LNG Market Development Alex Volkov, President Market Development ExxonMobil Irtiza Sayyed, Country Manager Pakistan ExxonMobil Shahrukh Mirza, senior officials of petroleum ministry and UGDC were also present on the occasion.
Nadeem Babar said it was a historic day as ExxonMobil had decided to invest in Pakistan after a gap of twenty years. He said business community would be provided enabling environment in line with the vision of Prime Minister Imran Khan.
"The deal is an honour for Pakistan and we will promote ease of doing business to promote investment in all the sectors including the energy sector." He said the government wanted to put itself out of the gas import and encourage private sector in the energy sector, and "this deal is the first step in that direction. Investment by ExxonMobil will also propel other energy companies to invest in Pakistan, which will help bring down the price of gas and create an environment of competition." Alex Volkov and Irtiza Sayyed said ExxonMobil had decided to invest in Pakistan after two decades with a vision to provide cost-effective and environment friendly gas to consumers on regular basis. "We will support the UGDC so that it can overcome the shortage of gas in Pakistan."Ghiyas Paracha said the government had changed the third party rules allowing the private sector to import gas. "Now we will be able to buy surplus gas from terminals and also buy the fuel from five upcoming terminals which will revive the CNG sector."He expressed confidence that after the increased LNG import, there would be visible difference between the price of CNG and petrol. With the promotion of CNG sector, he said, there would be a drastic reduction in fares of public service transport, besides it would help save one billion Dollars of foreign exchange per annum, convert two million vehicles to CNG and bring more foreign investment for import of fuel efficient CNG kits and light-weight cylinders.