ISLAMABAD: The US-Pakistan Energy Working Group, one of the five groups under the strategic dialogue framework, will meet in Washington on Tuesday to discuss expected US assistance to the country’s troubled energy sector, particularly in the field of liquefied natural gas (LNG).

The dialogue will be co-chaired by US Special Envoy and Coordinator for International Energy Affairs, Carlos Pascual, and Minister for Petroleum Shahid Khaqan Abbasi and Minister for Water and Power Khawaja Asif. A Pakistani delegation comprising about 20 members will take part in deliberations and return home on Nov 18.

An official said the US administration had arranged Pakistani delegation’s interaction with executives of several US energy companies, particularly those dealing with LNG business, including terminal operators and LNG re-gasification facilities, mostly based in Houston, Texas.

The strategic dialogue process, suspended in the aftermath of May 2011 Abbottabad Operation, was revived during Secretary of Sate John Kerry’s visit to Pakistan in August this year to support its efforts to overcome energy crisis and help its renewable energy and gas projects and reform initiatives.

On Pakistan’s priority list is US support for major water sector projects and gas imports. An official said the government was trying to persuade the US administration to exempt the Iran-Pakistan gas pipeline project from the purview of its sanctions against Tehran or at least soften its opposition in view of about $2.5 billion that Pakistan will save annually.

The Turkmenistan-Afghanistan-Pakistan-India gas pipeline for importing gas from Turkmenistan will also be discussed.

The visit will generally revolve around US support for LNG imports and the delegation will get an opportunity to interact with leading US energy companies, particularly those in LNG business.

Officials said Pakistan was expecting offers from US companies for LNG supplies at rates about 50 per cent less than those in the Middle East from where Islamabad had been trying to import LNG. This can also become a basis for negotiating gas price with Iran.

Under the Iran-Pakistan gas price agreement, any party can seek revision of gas rates one year ahead of gas flows on the basis of prices of competing fuels. The officials said the US was now emerging as one of the leading LNG suppliers following its shale gas discoveries.

It was announced at the end of John Kerry’s visit in August that Pakistan and the US would resume dialogue on five strategic priority areas -- law enforcement and counter-terrorism, economics and finance, energy, security, strategic stability, and non-proliferation and defence.

Pakistan is also expecting US support for technology transfer to exploit its vast reserves of shale gas estimated by the US-Energy Information Administration at 105 trillion cubic feet (TCF).

In August this year, the EIA estimated Pakistan’s fresh recoverable reserves of shale gas at 105 TCF and more than nine billion barrels of oil -- many times larger than the proven reserves of 24 TCF of gas and about 300m barrels for oil. Pakistan currently produces about 4.2 billion cubic feet per day of gas and about 70,000 barrels of oil per day.

Our Correspondent in Washington adds: “The United States and Pakistan have worked closely and on a sustained basis to better develop and diversify Pakistan’s energy sector, a key priority of the Pakistani government and people,” the State Department said.

The statement pointed out that the United States had supported increased energy generation, improved distribution, management, revenue collection, and policy reform. Since October 2009, the United States has helped add 1,000 megawatts of capacity to Pakistan’s grid -- enough to supply electricity for more than 16 million people.

In a joint paper on US-Pakistan energy cooperation, the White House also stressed “a strong partnership” between the two countries on this key issue. The United States “recognises the central role a stable supply of energy plays in accelerating Pakistan’s economic growth”, the White House added.

The paper also noted that the US Overseas Private Investment Corporation was facilitating private sector investment in a number of wind projects in Pakistan, besides helping the country harness other energy resources, particularly hydro.

The United States is also helping Pakistan diversify its energy supply through assisting with the development of domestic natural gas and renewable energy resources, as well as the import of liquefied natural gas.

After the meeting in Washington, the Pakistani delegation will travel to Houston for a series of meeting with US investors.

Pakistan’s ageing infrastructure and energy sector management have left most of the country without a reliable sources of electricity.