Pakistan Grants Five Year Tax Holiday for LNG, Gas Import Projects

Pakistan’s Economic Coordination Committee (ECC) on Thursday extended five year tax holiday for LNG and gas import projects, reported local newspaper The News International.

ECC also extended 23-year tax holiday for Gawadar Port by giving it the status of Gwadar Port free zone as requested by China Overseas Port Company Ltd.

Other decision that the ECC took was that Pakistan’s Oil and Gas Regulatory Authority (OGRA) would determine the price of LNG on a monthly basis without going through the process of public hearing, the newspaper reported.

Earlier this month, Pakistan received its first ever shipment of LNG from Qatargas. Qatar sold the LNG cargo to Pakistan State Oil Company Limited (PSO), Qatargas announced on April 4.

The LNG cargo was sold on a free-on-board basis and loaded at Ras Laffan Port on to the LNG vessel Excelerate Exquiste on 21 March 2015. The cargo was secured to commission the Excelerate Exquiste, the Floating Storage and Regasification Unit, a part of the Elengy LNG terminal which is the first Pakistan LNG import terminal, Qatargas said.

Also, China Petroleum Pipeline Bureau (CPP) is soon expected to begin laying 700 km Gwadar-Nawabshah gas pipeline in Pakistan on government to government basis. CPP would bring the required capital of $1.5 billion and will also construct the LNG terminal in Gwadar, costing $800 million. The terminal, which is likely to be offshore, will have a capacity of 500 mmcfd of LNG.