KARACHI, Nov 3: Sui Southern Gas Company (SSGC) was considering the offer to import 350 to 500 million cubic feet (mmcf) per day of liquefied natural gas (LNG) from Qatar or Iran to meet rising domestic demand.

This was stated by SSGC Managing Director Munawar Baseer Ahmed here on Wednesday. He said that three to four international firms including Shell and Asia Petroleum had approached the company as well as Ministry of Petroleum and Natural Resources and offered to supply LNG from Iran or Qatar.

"We have asked them to lower their price from $3.50 to $2.50 per million cubic feet per day. Our average buying price is about $2.20 mmcf per day in the country", Baseer said and hoped that they would come back with the new price structure.

He said that LNG project would be faster in implementation as it would not involve pipeline installation, any territorial issue or third party interest which is related to Pak-Iran gas pipeline or Turkmenistan. The gas would be converted into LNG at the fields in Qatar or Iran and would be gasified in Pakistan, he added.

He said that the demand for gas was rising rapidly and SSGC would need one billion cubic feet per day in next three years to cater to this demand. Currently SSGC was supplying 750 mmcf per day to its consumers, he added.

He said that by 2010, there would be a significant shortage of gas in the country if not imported at a large-scale.

The domestic demand was rising at a rate of 6 per cent while CNG station requirements growing at 10 to 12 per cent per annum. SSGC has to supply gas to DHA desalination plant, Fauji Fertilizer Plant at Bin Qasim, Tapal Energy, Textile City, Al-Tuwairqi Steel Mills.

Answering a question, he said that three pipeline projects were still under negotiations and they would take at least five years from the date of finalization of agreement while LNG project would take two to three years for completion.

He pointed out that SSGC consultants and the Ministry of Petroleum and Natural Resources were preparing two presentations on these three projects for the prime minister. These presentations would include cost/benefit analysis, value/benefit analysis, geo-political and security issues, he added.

He said that gas through Iran pipeline project would cost $2 mmcf per day, while Turkmenistan gas pipeline and Qatar Gas pipeline to cost below $2 mmcf per day.

Mr Baseer said that till such a time when one of these pipeline projects was picked for implementation, LNG project was feasible and practical to meet immediate demand provided the gas was available at $2.50 mmcf per day.-APP