According to Bloomberg, Pakistan State Oil (PSO) intends to build a $500 million LNG terminal as part of its diversification strategy. State-owned corporation also intends to enter digital payments sector, planning to apply for a license to become a mobile wallet operator, says CEO.
“The company has reached an understanding with a few large customers in this regard and has begun preliminary preparations for the project that will include Pakistan’s first LNG storage facility,” Taha was quoted as saying in the report. According CEO Syed Muhammad Taha in an interview on Friday, the mentioned LNG terminal would be built within four years near to Karachi, the nation’s financial capital and port city.
According to the top PSO executive, prices will remain high as long as a geopolitical crisis persists, but gradually it will decline.
We’ll proceed forward as soon as the prices are suitable.PSO has no intentions to purchase more fuel oil during the current fiscal year as it anticipates a decline in demand for gasoline and diesel of 5-7 percent, according to Taha.He claims that the government is negotiating long-term deals with Middle Eastern nations that will satisfy around 80% of its import needs for gasoline.Similar arrangements for LNG and diesel are already in place in Pakistan.
Pakistan has been heavily struck by this year’s increase in fuel prices. It is also struggling with disastrous floods that have been exacerbated by climate change. The International Monetary Fund bailed it out late last month, but only after it agreed to raise domestic fuel prices.