LNG would be a game changer in the energy sector, he added.
Advertisement
Petroleum and Natural Resources Minister Shahid Khaqan Abbasi has labelled as corrupt the political leaders that criticise the liquefied natural gas (LNG) project and said he received big offers from the oil mafia for giving up gas import.
Although consuming nations have welcomed a recent fall in LNG prices in parallel with lower crude oil prices, LNG is traditionally traded at higher prices in Asia than in other parts of the world, characterized by large-volume, long-term contracts that often span 20 years.
Japan is not the only place where LNG demand is declining, at least in the short term.
“A market that is flexible and can function better will provide benefits for producing and consuming countries”, Japanese Economy, Trade and Industry Minister Yoichi Miyazawa said in a speech at the LNG Producer-Consumer Conference, which his ministry hosted.
He said the LNG terminal was also built in a record period and that the country’s electricity shortage will be overcome with the construction of second such terminal.
Abbasi said the oil mafia did not want efficient power generation in the country and they even tried to bribe him to stop working for LNG import.
The availability of cheap coal has contributed to a move away from LNG for utilities in Japan, South Korea and elsewhere despite downward price pressure for most of the past year.
He said the negotiated LNG price was less than that of the gas to be imported through pipelines from Iran and Turkemistan. He said the private sector could also import LNG according to their demands and contracts.
Advertisement
Discussing the Nandipur power project, the minister said the matter had been handed over to the Auditor General of Pakistan who would conduct an audit and reveal facts to the people.
