News & Media UGDC and ExxonMobil Forge Historic LNG Supply Agreement

UGDC and ExxonMobil Forge Historic LNG Supply Agreement

Islamabad, September 19, 2019 — Universal Gas Distribution Company (UGDC) proudly announces the signing of a landmark agreement with ExxonMobil, marking the first-ever private sector import of Liquefied Natural Gas (LNG) in Pakistan. This strategic partnership is poised to revolutionize the country's energy sector by enhancing fuel affordability, reducing the national import bill, and revitalizing the compressed natural gas (CNG) industry.

The agreement, signed in Houston, Texas, by UGDC CEO Ghiyas Abdullah Paracha and ExxonMobil Vice President Richard Rayfield, outlines the import of four LNG cargoes over the next year. This initiative is expected to commence with the first shipment arriving in October. The ceremony was attended by key figures, including Special Assistant to the Prime Minister on Petroleum Nadeem Babar, ExxonMobil's LNG Market Development Chairman Alex Volkov, President Irtiza Sayyed, and Country Manager Pakistan Shahrukh Mirza, alongside senior officials from the petroleum ministry and UGDC.

UGDC, the first private entity in Pakistan to receive a gas marketing license, will utilize existing LNG terminal facilities to handle the imported cargoes. This move aligns with the government's vision to gradually transition out of the gas import business, fostering a more competitive and efficient energy market.

The introduction of privately imported LNG is anticipated to significantly reduce CNG prices, making them at least 30% cheaper than petrol. This price adjustment is expected to encourage the conversion of approximately two million vehicles to CNG over the next two years, resulting in an estimated annual saving of $1 billion in foreign exchange.

For media inquiries, please contact:

Universal Gas Distribution Company
Email: media@ugdc.com
Phone: +92 51 111 888 432

 
 

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Universal Gas Distribution Company (UGDC) is Pakistan’s first private limited gas distribution company, engaged in the sale, purchase, import, and distribution of gas to commercial and industrial customers nationwide.

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