Agreement signed that will change the entire gas landscape in Pakistan

ExxonMobil to supply LNG to transport sector; deal signed

Universal Gas Distribution Company (UGDC) of Pakistan has signed a deal with ExxonMobil for import of LNG in Pakistan. The imported LNG will be used by the transport sector of Pakistan. After the agreement, the first shipment of LNG is expected by the next month which will change the entire gas landscape in Pakistan.

The agreement was signed in the US city of Houston between UGDC, the first company to get private gas marketing license in Pakistan, and ExxonMobil. CEO UGDC Ghiyas Abdullah Paracha and Vice President of ExxonMobil Richard Rayfield signed the agreement.

Special Assistant to Prime Minister on Petroleum Nadeem Babar, Chairman LNG Market Development Alex Volkov, President Market Development ExxonMobil Irtiza Syed, Country Manager Pakistan ExxonMobil Shahrukh Mirza, senior officials of Ministry of Petroleum and UGDC were also present on the occasion.

Ghiyas Paracha said that the government has changed third party rules to allow the private sector to import gas. “Now we will be able to buy surplus gas from terminals and also buy the fuel from five upcoming terminals which will revive the CNG sector,” he said. He said that the move will increase parity between the price of CNG and petrol, fares would be reduced, one billion dollars of foreign exchange per annum would be saved, two million vehicles would be converted to CNG and foreign investment would be attracted for import of CNG kits and cylinders.