KARACHI: Port Qasim Authority (PQA) is all set to handle the country’s energy requirement and in readiness to facilitate the energy terminals at the PQA.
According to industry sources, the Fauji Oil Terminal (Fotco) and Pakistan GasPort Limited signed a joint venture to setup a Floating Storage Regasification Unit (FSRU) LNG terminal at Port Qasim. The sources in the industry said that the joint venture has also bided on the Sui Southern Gas Company (SSGC) tender, another company which has also taken part in the bidding process is Akbar Enterprises. However, it was learnt that there are high chances that the tender will be awarded to Fotco and GasPort, a joint venture.
It was learnt that the opening of the tender is on January 27 (today), and Fotco, as a big and financially strong company, will set up FSRU for the import of LNG. Liquefied Natural Gas (LNG) developers have approached the PQA to establish LNG Floating Terminals at Port Qasim, said Chairman Port Qasim. It is pertinent to mention that currently Engro Corporations’ LNG terminal is under progress, which will be completed by the first quarter of 2015.
Once the terminal being developed by the Engro subsidiary, ie, Engro Elengy Terminal Private Limited (EETPL) is completed, the project will process imported LNG and inject 400mmcfd gas to the national network, which will reduce the existing shortage of 1.6 billion cubic feet by one-fourth. The SSGC says that Pakistan is currently facing a natural gas shortfall of over two Billion Cubic Feet per Day (BCFD) which is expected to increase significantly in the next 15 years due to increasing demand and depleting reserves.
The Government of Pakistan (GOP) is pursuing a multi-pronged strategy including import of LNG as envisaged in the 2011 LNG Policy in a phased manner to mitigate this gap. The first phase of the strategy was the Fast Track LNG Import Project at Port Qasim, Karachi that is set to receive its first shipment of LNG in the first quarter of 2015. In order to reduce the demand and supply gap, another LNG import terminal is envisaged at Port Qasim, Karachi. The SSGC- Pakistan’s leading integrated gas company with considerable experience throughout the gas chain- will enter into a long term contract for LNG storage and regasification under an LNG Services agreement (LSA) with the LNG services provider. LNG will be procured by SSGC or a GOP designated entity under separate LNG supply contract(s).
The existing gas transmission infrastructure is being augmented for transportation of gas from Karachi up North. The Sui Southern Gas Company invites bids from interested parties to provide LNG storage and regasification services, taking into consideration the basic requirements which include provision of the services in compliance with all Pakistan laws and regulations, and applicable international standards.
Source: The NEWS