Engro Elengy Terminal Limited (EETL) in collaboration with M/s Shell and Fatima Group plans to construct another terminal at Port Qasim with a capacity to re-gasify up to 600 MMSCFD LNG. This was announced by the CEO of EETL Jahangir Piracha. He was commenting on celebration of an upcoming milestone of the existing terminal which is set to receive its 100th LNG tanker.
Following successful operation of over two-and-half years, Pakistan's first and the only LNG import infrastructure has been a virtual natural gas lifeline for the country. With capacity to inject 600 MMSCFD Re-gasified Liquefied Natural Gas (RLNG) in the system, Engro terminal emerges as the biggest gas source in Pakistan.
The terminal has already handled 6.1 million Tons of LNG since commissioning through 100 shipments, thereby bridging national natural gas deficit by 20-25 percent in the process. The efficient operation of the terminal offers a platform to accelerate national energy independence and economic revival.
The terminal is providing round-the-clock supply of natural gas at a utilization rate of 100 percent for the Floating Storage and Re-gasification Unit (FSRU). This achievement makes it the only FSRU in the world that is operating at such high re-gas rates.
With supply of RLNG, Pakistan is saving about US$ 1.7 billion each year due to fuel arbitrage savings between diesel and LNG alone. Additionally, Engro is one of just fifteen companies in the world, which is operating such an advanced terminal storage and re-gasification technology that enables such efficiencies.
Over 2,200MW power generation capacity has been brought online or switched from more expensive liquid fuels. RLNG also energized close to a dozen projects, generating billions of dollars economic activity in the country. More than 750 CNG stations started operating in Punjab for the first time with RLNG supplies, the first steps to an estimated US$4.5 billion industry.
Revival of fertilizer industry is also made possible with substantial increase in production. This contributed significant savings to national exchequer and had direct contribution to GDP. The running of fertilizer plant at full capacity provides relief to farmers in terms of cheap and easily available urea fertilizer. It also brightens prospects of export of urea fertilizer in order to earn precious foreign exchange.
Historically unavailability of gas to fertilizer plants has resulted in outflow of valuable foreign exchange as imports increased to meet demand. Additionally 500 industrial units, mainly comprising of export-oriented textile units have been revived leading to job creation for youth and the hope of reversing the recent and concerning slide of textile exports.
Engro Elengy terminal has proved to investors inside the country that the business model works leading to a dramatic investment in the ecosystem that will lead to 2-3 more terminals in the near future with even more profound and positive impact on the country's energy situation. Gas shortage will be eliminated, and cost of tariff will be positively affected as blended fuels get a greater penetration of LNG. Furthermore, external investors are now bullish on Pakistan as the biggest global growth story in LNG with expectations that it can be among top 5 LNG markets in the world within 5 years.-PR
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