Pakistan's gas market

The role of Pakistan in connecting the global gas markets — the importance of LNG in Eurasia

30 January 2019, 4 - 8 PM CET

TUSIAD Avenue des Gaulois, 13, Brussels 1040

The Brussels Energy Club started the year with another focused discussion on the global dimensions of the natural gas market. This time we drew the attention of our members and friends to Pakistan, a key country in Eurasian-Indian Ocean trade, investment and far-reaching energy value chains, which have recently been revived by mega initiatives such as the China Pakistan Economic Corridor.

In recent years, governments in Pakistan placed substantial faith in the development of natural gas as a primary fuel enabling substantial industrial activity in the country. This led to the development of some Pakistan gas upstream assets, as well as the commissioning of some prominent LNG projects. In fact at one stage the country was seen as one of the most prospective new LNG markets in Asia, if not the wider world, attracting substantial investor interest. While Pakistan was a market of interest for some players, others found the investment climate questionable. Some foreign energy groups were unable to receive price concessions in order to develop their assets, while others appeared to leave the country altogether.

However, Pakistan"s gas sector remains a booming market from the perspective of its growth potential. The new government of Prime Minister Imran Khan will continue to push natural gas as a preferred fuel in the country"s energy mix. In a country of some 200 million souls, and its centrality to a region with a population in the billions, this spells abundant opportunities. Continued policies of liberalisation and gas sector restructuring will only further support these trends. A good debate about the prospects of natural gas in Pakistan is well overdue.

In order to lead the debate, we invited the very experienced Jahangir Piracha, CEO of Engro Vopak Terminal, to Brussels in order to take us through some of the key scenarios for the future of gas, and particularly the LNG trade, in Pakistan. Jahangir Piracha elaborated upon the key gas sector projects in the country, particularly those on the investor horizons, explained the pros and cons of investing in some of these projects, and addressed both governance and investor issues along the way, He also talked us through the key trends in Pakistan's LNG markets and provided for us his first hand insights on the role that his company plays in the sector.

This session was a must for all followers of natural gas market development in Eurasia and the Indian Ocean-basin, as well as all stakeholders following the discussion on energy security more broadly.

Program January 30, 2019: 16.00 — 20.00:

Setting out the debate by the Brussels Energy Club
Presentation by Jahangir Piracha
Roundtable discussion with meeting participants (NB: the Chatham House Rule will apply).
Cocktail reception

Summary of the meeting

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