July 02, 2018

    The LNG Terminal – a step towards resolving the energy deficit

    For the past one decade, Pakistan’s economy has been in a severe crisis. Gas exploration has ebbed over the years, while demand for energy has risen significantly. The output of natural gas tapered around 4.2 billion cubic feet per day but the demand has remained pegged at 6.2 billion cubic feet. Moreover, in order to effectively meet the rising energy demands of all the sectors of the country – a staggering 8 billion cubic feet of gas per day is required.As part of its efforts to help the country overcome its energy crisis, Elengy Terminal Pakistan Limited has been working on deploying an LNG terminal for import of this precious commodity in the country on a fast track basis.

    With the government’s support, there have been some encouraging developments in the last six months. The country’s first LNG terminal has started to take shape and is fast heading towards its completion by January 2015, some 60 days ahead of its deadline.

    To facilitate the transmission by SSGC, ETPL is laying about 16km of 42 inch diameter pipeline to Pakland SMS. From the ETPL terminal, an additional seven kilometers of pipeline from terminal to gas custody transfer unit is being constructed.

    In addition to that, the work on a jetty is under process. Dredging work has been done till 14.5 metres below sea level. The size of the jetty would be in excess of 500 meters.

    The terminal will be equipped to handle 50 percent higher volumes than contractually required from first gas date. This balance 200 mmcf/day of RLNG will be available for the use by the utilities and companies belonging to power, cement, and steel and compressed natural gas service station owners.

    The cost of the terminal has been estimated at around $150 million. The total funding has been arranged by the Engro group through bridge financing. The IFC (International Finance Corporation) and ADB (Asian Development Bank) are undertaking due diligence to fund the project.

    Engro is not only working on fast track execution but has also offered the cheapest handling charges in the region. This makes the project a unique and challenging initiative for the Company.