LNG Import Contract in the perspective of Associated Technical and Managerial Challenges for the Distribution Companies of Pakistan

Kawish Bakht,Bakhtawar Seerat,Tahir Nawaz,Farhan Aslam

doi:10.14569/ijacsa.2016.070608

Kawish Bakht, Bakhtawar Seerat + Show 2 more

Open Access

https://doi.org/10.14569/ijacsa.2016.070608

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Abstract

Energy Managers and Government Office Holders in Pakistan are nowadays pondering over multiple options for the resolution of ongoing Energy crises in the country. LNG (Liquefied Natural Gas) import has been finalized for being the quickest remedy among all the available options. LNG (Liquefied Natural Gas) contract is at the verge to be implemented in Pakistan. However there are several factors that need to be addressed while implementing the project. In this paper, identification of the challenges affecting the optimized distribution of gas is presented. The sustainability of LNG (Liquefied Natural Gas) Project depends upon the successful running of the project without facing any financial crises arising from the gas distribution losses. The motive of this paper is the identification of the factors that are risk for the sustainability and successful running of LNG Import in Pakistan on long term basis. In association it is required to identify technical and managerial challenges for the gas distribution companies in distribution of LNG. Moreover recommendations are proposed for modification in existing infrastructure and governing policies related to gas distribution companies for logical success and long term sustainability of LNG import in Pakistan

Highlights

LNG (Liquefied Natural Gas) Import Contract for Pakistan has been perceived by the Energy Managers of the day as the quickest possible and least objectionable solution in the perspective of internal and external pressures
The options under discussion are ranging through IP (Iran-Pakistan) Gas Pipeline Project, TAPI (Turkmenistan, Afghanistan, Pakistan & India) Gas Pipeline Project, QatarPakistan Undersea Pipeline/ LNG import from Qatar, Energy Sector Cooperation with China to USA’s Cooperation in Energy Sector
The question arises “Is the Pakistani Regulatory Authority (OGRA) ready to allow the losses for an imported LNG fuel which is much costlier as well?” The failure in successful Distribution of LNG among consumers would end up in Chaos for energy sector which is already gasping

Summary

INTRODUCTION

LNG (Liquefied Natural Gas) Import Contract for Pakistan has been perceived by the Energy Managers of the day as the quickest possible and least objectionable solution in the perspective of internal and external pressures. The LNG distribution by the same gas distribution company infrastructures and using their existing pipeline network is definitely having losses. The question arises “Is the Pakistani Regulatory Authority (OGRA) ready to allow the losses for an imported LNG fuel which is much costlier as well?” The failure in successful Distribution of LNG among consumers would end up in Chaos for energy sector which is already gasping. The aim of this paper is to identify the technical and managerial challenges, the associated risks in LNG distribution in existing structure of gas distribution companies It includes analysis of risks which may jeopardize the LNG solution for national energy Sector of Pakistan. It was considered appropriate to acquire project insurance and leave this responsibility on the shoulders of two existing gas companies i.e. SNGPL and SSGC rather than allowing any new player for LNG distribution due to infrastructure constraints and timeline requirements.

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FUTURE WORK