Pakistan’s first LNG terminal lowers energy costs

Pakistan’s Prime Minister Shahid Khaqan Abbasi said that the supply of Regasified Liquefied Natural Gas (RLNG) provided by the Engro Terminal Limited established LNG terminal at Port Qasim is saving the country about USD$1.5bn each year, compared to the cost of other energy sources, reported Gulf News.

With the capacity to re-gasify up to 600 mmscfd, the recently inaugurated Engro terminal in Karachi is believed to be the single largest gas source in Pakistan, offering efficiency and a resolution to power shortages in the country.

6.1m tonnes processed

The prime minister said the terminal has so far handled 100 LNG cargo ships with 6.1m tonnes of LNG, according to Gulf News.

He also reportedly called LNG import a “game changer for Pakistan” as 50% of the country’s primary energy supply was being made from gas.

The prime minister allegedly said the supply of RLNG would benefit power, fertiliser, textile and other industries, adding that the CNG sector had been revived with steady power for the fertiliser industry.

Private sector investment

He also indicated that the project had boosted interest in private sector investment, which is now leading LNG development in the country.

The prime minister stressed that it was a good step for the private sector to build their own terminals and buy LNG, in light of market demand.

The Government would only intervene if the sector failed to meet demand, he added.

A second terminal will be opened at Port Qasim in November followed by at least two other terminals funded by the private sector.

Companies said to be involved so far include Younus Brothers Group, Sapphire Group and Trafigura.