KARACHI: The largest gas importer and gasoline retailer in Pakistan, Pakistan State Oil Company (PSO), will invest $500 million to establish an LNG import terminal. According to PSO CEO Syed Muhammad Taha, who was reported by the agency, the import facility will be built close to Karachi and take four years to complete.
According to him, the business has agreements with a few sizable clients and has started making initial plans for the project, which would feature Pakistan’s first LNG storage facility.
After domestic gas output fell during the past ten years, one of the markets for LNG that has grown the fastest is Pakistan, which mostly utilizes it to produce electricity. Prices will remain high as long as a geopolitical crisis persists, but eventually, they will decline, according to Mr. Taha.
According to the CEO, PSO, the nation’s largest corporation by revenue and owner of a network of 3,500 service stations, may look for a partner for the project. He didn’t provide specific information on the project’s size, whether it would be on land or in the water, or when it would start operating.
Currently, the nation has two floating LNG import terminals, both of which are close to Karachi. Additionally announcing their intention to invest in terminals are Qatar and Mitsubishi Corporation.
In 2022–2023, PSO anticipates a 5-7% decline in demand for gasoline and diesel, and the company has no plans to increase its fuel oil purchases at that time, according to Mr. Taha. According to him, the government is in talks with Middle Eastern nations about long-term agreements that will cover around 80% of its needs for imported gasoline. These kinds of arrangements for LNG and diesel already exist in Pakistan.
According to Mr. Taha, the fuel retailer also intends to apply for a license to operate mobile wallets and, eventually, launch a digital bank. It has also set aside Rs. 1 billion to establish a venture capital fund.”Therefore, moving forward, our goal is quite clear. We wish to explore new territory.
