Pakistan’s first and only LNG terminal at Port Qasim has so far re-gasified and pumped over 77 billion cubic feet of gas into the national gas distribution network by converting approximately 1.7 million tonnes of LNG imported so far.
Engro’s LNG Terminal fulfilled its first year’s contractual obligation to handle 1.5 million tonnes of LNG.
According to Engro’s Terminal Manager Amir Mahmud, a total of 29 LNG cargos have so far berthed at Engro Terminal and all LNG imported has already been regasified and pumped into SSGC system to be further dispatched to different sectors of economy. He said that LNG terminal has received LNG cargoes from Qatar, Australia, Nigeria and Spain.
Mahmud further said that as per the current Annual Delivery Plan, Engro is receiving four cargos a month. “Engro received 24 cargo deliveries in the first year of operation as per contract with the SSGC,” he added.
Mahmud said that after the continuous supply of LNG into the system, gas-based power plants are getting 250 mmscfd gas, fertilizer plants, 80 mmscfd; CNG sector, 35 mmscfd and textile industry 35 mmscfd.
He informed that most of the LNG imported so far has been utilised to run gas-based IPPs which were either sitting idle due to non-availability of gas or burning most expensive form of fuel ie diesel producing expensive electricity.
He said that recent domestic prices for different fuels are LPG $15.13/mmbtu, HSFO $8.05/mmbtu, HSD $17.7/mmbtu, MoGas $18.23/mmbtu while RLNG $6.74/mmbtu. RLNG is not only cheaper than alternate fuel but is also cleaner, environment friendly and has higher efficiency in power generation.
Engro is one of the 15 companies in the world which is operating such advanced terminal storage and re-gasification technology.
Engro’s LNG Terminal, constructed in a record time of 11 months and designed as per international standards, is one of the fastest constructed LNG terminals in the world.
Mahmud informed that this terminal alone would save up to $600 million for Pakistan through fuel substitution and will generate up to 2,000 MW of electricity. The step to setup LNG import infrastructure is in the right direction, and the country needs another three to four LNG import terminals to curtail the ongoing crisis.
The LNG project is a game changer for Pakistan and will save the country more than $1 billion per year when expensive energy alternates are replaced with this cheaper and cleaner fuel, added Mahmud.