According to Algerian Trade Minister Mustapha Benbada, Pakistan expressed interest in procurement of Algerian LNG and the two countries are tabling cooperation plans on constructing a regasification terminal in Karachi, Reuters informs.
Speaking at the margins of a joint commission on bilateral trade ties meeting, Benbada stated that export to Pakistan would start upon completion of the $1.5 billion terminal.
“It’s a very important project for us. We will send a written proposal with a feasibility study of the project to the Algerian government to study it, ” Hamid Khan, Head of the Oil deDartment at Pakistan’s Petroleum and Natural Resources Ministry pointed out.
So far the biggest importers of Algerian LNG have been Europe, 20% of its natural gas needs, and the US. However, the demand for LNG started decreasing as the said importers moved to other ways of energy supply. Therefore, the country is undertaking activities to find new customers and alternative markets in Asia.
In that respect, Sonatrach, the state-owned energy group, is expanding its production capacities. The company has two new units underway. The first one with 5.4 million tons capacity on annual basis should come onstream in July, while the second one of 7.4 million tons per year capacity should be put into operation in 2013.
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LNG World News Staff, April 18, 2012