Karachi, Pakistan, September 01, 2015: EngroElengy Terminal Private Limited (EETPL) signed a Loan Agreement with International Finance Corporation (IFC), a member of the World Bank Group, and Asian Development Bank (ADB)for Pakistan’s first Liquefied Natural Gas (LNG) import terminal, to helpaddress the country’s severe energy crisis and spur economic growth.
Foreign lenders’ investment will go towardsthe design, construction and operation of the Elengy terminal constructed at Port Qasim, Karachi. The terminal utilizes a Floating Storage and Regasification Unit (FSRU) provided by U.S.-based Excelerate Energy, and is expected to handleup to 4.5 million tons of LNG every year, which will help ease the country’s crippling power shortagesand reduce itsreliance on expensive diesel and heavy fuel oil imports.
Khalid Subhani, CEO of Engro Corp said: “Importing natural gas isa more economically viable source for power generation, especially when Pakistan’s indigenous gas resources are diminishing. The new facility will alsohelp diversifyPakistan’s fuel supply mix and open one of the largest gas markets in Asia to the global LNG market.”
Speaking at the occasion Sheikh Imran ul Haq – the outgoing CEO of Engro Elengy Terminal Limited said: “The Company has fulfilled its commitment by constructing all infrastructure facilities in a record time period of 332 days. This historic achievement is testament to Engro’s expertise in deploying world-class solutions against stretched deadlines. We are hopeful that the commissioning of the country’s first LNG terminal will help meet the rising demand of gas in the country and fuel economic growth and help alleviate the energy crisis that continues to impede industrial growth.”
The LNG terminal is first of its type and has been built at a cost of USD 125 million in a world record time of 332 days. The terminal – which is also one of the most cost-efficient terminals in the region – has the peak capacity for regasification of up to 690 mmcfd of LNG which provides for surplus capacity setup. The terminal received its first shipment on 26th March 2015 and so far has received a total of 9 cargos where the FSRU shuttle has saved approximately USD 2.6 million to the national exchequer.
Engro Elengy Terminal Limited (EETL) believes that Pakistan urgently needs to utilize its existing power generation capacity fully, while reducing its reliance on costly imported diesel fuel for electricity generation. The re-gasification of LNG will allow generation facilities to reach their maximum potential while using a cleaner, cheaper and more efficient fuel for greater energy security and diversification. In addition, according to estimates 3 MTPA of LNG used to generate 400 MMCFD of RLNG will cost under $1.5 Billion (PKR 150 Billion) per annum at today’s Brent linkage; this RLNG will displace over $2.5 Billion (PKR 250 Billion) of Diesel and LSFO usage resulting in sustained annual SAVINGS of $1 Billion (PKR 100 Billion). These are large savings by any standards.