The second state-of-the-art Liquified Natural Gas (LNG) terminal, considered 50 percent cheaper as compared to diesel in power generation, is being established at the Port Qasim Karachi for which almost all formalities have been completed.
“We have succeeded in awarding, again through a transparent and competitive process, the work of building the terminal at the Port Qasim. The work on the terminal has started and within one year the flow of gas is likely to begin,” official sources told APP.
The present supplies, they said, barely met the country’s 50 percent demand and the LNG import was “critical” for development sectors including industry, power and fertilizer production. So, the private sector was invited to invest in setting up a terminal for receiving 200 mmcfd of LNG, to be expanded to 400 mmcfd, they added.
The successful bidder, the sources said, would be bound to make the terminal operating within one year so that the target of increased supply of 400 mmcfd LNG could be achieved.
Besides, “We have rolled out the process of procuring 3.5 million tons of LNG from the international market which is again done through a competitive process.”
Keeping in view, the current gap between demand and supply of power, they said, the government intended to bring 7,000 megawatt electricity in the system besides setting up 3,600 MW LNG-based projects at the earliest, for which all available resources were being utilised.
“Beyond December 2017, other projects such as Dasu, Diamer Bhasha, Karachi Civil Nuclear Energy and many other projects will also be completed,” they remarked.
Engro’s Elengy Terminal Pakistan Limited (ETPL), which built the country’s first LNG terminal in March this year in shortest period of 11 months, is injecting around 200 mmcfd (million cubic feet per day) LNG in the national system to meet the existing energy demand.
Commenting on the fast-track completion of the first terminal, the sources said it had been completed in 335 days at a cost of $135 million, which was a record in world’s history. Normally, they said, a terminal takes around three to four years to complete and become operational, but it was the hallmark of the present government to set up the country’s first LNG terminal in just 11 months.
They termed the setting of terminals a ‘milestone’ in the history of the country and expressed the confidence that with the import of LNG, there would be a significant decrease in electricity load-shedding as special focus was being given to overcome the power shortage.
New LNG power plants, the sources said, were being established, because LNG is 50 percent cheaper as compared to the diesel power generation plants, and it will save over Rs 100 billion annually.
