The country’s oil import bill witnessed reduction of 22.32 percent during the first half of the current fiscal year as compared to the corresponding period of last year, Pakistan Bureau of Statistics (PBS) reported. The overall oil imports during July-December (2020-21) were recorded at $4771.471 million against the imports of $6142.197 million during July-December (2019-20), showing decline of 22.32 percent, according to latest PBS data. The commodities that contributed in decline of oil import bill included, petroleum products, the imports of which decreased by 16.30 percent, from $2591.065 million last year to $2168.674 million during the current fiscal year. Likewise, the imports of petroleum cured decreased from $1771.251 million to $1322.952 million, a decline of 25.31 percent while the imports of natural gas (liquified) went down by 35.33 percent, from $1626.814 million to $1052.124 million. On the other hand, the imports of petroleum gas (liquified) increased from $153 million to $227.643 million, showing growth of 48.79 percent while the imports of all other oil products increased by 16.42 percent, from $0.067 million to 0.078 million. Meanwhile, on year-on-year basis, the oil import bill shrunk by 20.04 percent to $824.872 million in December 2020 when compared to the imports of $1031.564 million in December 2019, the data revealed. However, the imports during December 2020 increased by 6.03 percent in December 2020 when compared to the imports of $777.977 million in November 2020. It is pertinent to mention here that the country’s merchandize exports increased by 4.98 percent during the first half (H1) of the current fiscal year (2020-21) as compared to the corresponding period of last year. The exports from the country during July-December (2020-21) were recorded at $12.098 billion against the exports of $11.524 billion during July-December (2019-20), according to the latest PBS data. The imports into the country during the period under review also increased by 5.72 percent by growing from $23.195 billion last year to $24.521 billion during the first half of current fiscal year. Based on the figures, the country’s trade deficit increased by 6.44 percent during the first half compared to the corresponding period of last year. The trade deficit during the first six months of the current fiscal year was recorded at $12.423 billion against the deficit of $11.671 billion last year. LNG trade The ease-of-doing business plan, introduced by the Pakistan Tehreek-i-Insaf (PTI) government, has started yielding the required results with stepping in of four private sector companies for carrying out regulated activities of Liquefied Natural Gas (LNG) across the country. In a significant development, Oil and Gas Development Authority (OGRA) last week granted the first-ever marketing licences to two companies for undertaking regulated activities with regard to the sale of natural gas and LNG. Besides it issued two ‘provisional licences’ of supplying LNG through cryogenic bowzers to consumers especially where the regular gas transmission network does not exist. The authority allowed Tabeer and Energas companies for the regulated activity of sale of natural gas and LNG for an initial period of 10 years, subject to fulfillment of execution of Gas Transportation Agreements with Sui Southern Gas Company (SSGC) and Sui Northern Gas Pipelines Limited (SNGPL), service agreements for metering/billing to the consumers and safety issues, LNG supply agreements, besides signing of contracts with LNG terminal operators. Whereas, the ‘provisional licences’ were issued to the LNG Easy (Private) Limited and Daewoo Gas Private Limited’ companies to pursue the LNG virtual pipeline project for supply of the commodity through cryogenic bowzers. The provisional licences would enable the virtual pipeline companies to complete all formalities under rules and apply for carrying out LNG regulated activities in the country. “It will help encourage healthy competition in the gas market, support the national economic growth and ensure a reliable supply of energy to the consumers of natural gas,” OGRA spokesperson Imran Ghaznavi said in a press statement. “. . . the companies are planning to use berth at Karachi Port Trust (KPT) and berth at Gwadar Port respectively for import of LNG cargoes, fill, transport, market and distribute . . . under ‘Integrated LNG Project Structure’ as per Article 2(a) of LNG Policy 2011,” the spokesperson said. The country’s existing natural gas reservoirs are depleting fast at a rate of 9.5 percent annually, and LNG is the only available instant remedy to bridge the increased gap between demand and supply of the country. Currently, the country’s indigenous gas production is around 3.7 Billion Cubic Feet per Day (BCFD) against the demand of 6 BCFD to meet requirements of more than 9.6 million consumers across the country. According to a recent report of OGRA, the gap between demand and supply of gas could increase by 5,389 Million Cubic Feet per Day (MMCFD) by 2029-30. At present, two LNG terminals are operating with a full capacity of 1,200 MMCFD (Million Cubic Feet per Day). A senior official privy to petroleum sector developments told APP that the government wanted maximum participation of private sector players in the LNG business and reduce its role. “The government wants to move forward with such a model under which private sector companies build their own LNG terminals, import and sell the commodity to consumers under a certain regulatory regime. It will help ensure availability of gas throughout a year at an affordable rate,” he said. Following the same model, the official said, the government had granted permission to five companies, out of which two had completed all ‘necessary approvals.’ “One company has hinted that it will start construction on its LNG terminal in next 30-60 days.”