The liquefied natural gas (LNG) import terminal, being set up by the Associated Group and Pakistan Gasport Limited at the Port Muhammad Bin Qasim on 'Built, Operate and Transfer' (BOT) basis, will be completed in November 2008 when the LPG production and first cargo will start.
The Associated Group Chairman and Chief Executive, Iqbal Z Ahmed, told Business Recorder that this terminal is located at twin pier, just north of Qutub point, near the confluence of Kadiro and Phitti creeks.
China Harbour Engineering and Adayard Dubai are EPC contractors while Techno-Consult International and Mustang Engineering are local and foreign consultants. He said that agreement was signed on April 28 this year while project completion date is set for November 2008 when the LPG production would start.
About the project's current status, he said that feasibility report was submitted to Port Qasim Authority (PQA) on January 12 and now engineering design of the jetty and submerged pipeline laying is in progress.
Apart from this, re-gas and LPG extraction facility detail design is in progress in Houston by Mustang Engineering. "Storage vessel lease arrangements are also in progress while the LNG supply source and supply vessel arrangements are underway," he added.
He said the re-gas platform fabrication contract was being finalised while banking consortium for project financing had already been completed. The Associated Group wants to buy LNG from spot market, he said, adding that the long-term sourcing of LNG and understanding of contracts for LNG purchase, RLNG supply to utilities, RLNG transportation agreements and direct sales to large customers were the project's challenges.
Of the Associated Group, he said the group started as a small family concern. After five decades of hard work and dedication, it is today one of Pakistan's pre-eminent corporate leaders with a wide range of interest. "We believe in corporate social responsibility, in giving back to the community and working on projects that benefit Pakistan's economy. We believe in profit, but profit from work that benefits humanity and helps economy," he added.
He said the group is one of the leading players in the energy sector of Pakistan and its flagship company Jamshoro Joint Venture Ltd is the single largest producer of LPG in Pakistan. The group also holds Lub Gas and Mehran LPG which market LPG across Pakistan through a wide network of distributors. The group is also involved in the production of NGL/Naphtha, fabrication of LPG cylinders, construction of LPG filling plants, real estate development.
He said that the Group is in advanced stages of augmenting production at the Jamshoro Plant by tapping oil and gas fields that have been declared uneconomic by the Government of Pakistan. "The Hanover Company, Walters Power International and our American and Chinese partners are pursuing these business opportunities with us," he said.
He said: "We strive for unequivocal excellence in all aspects of business so that we are able to satisfy and, indeed, exceed the expectations of our shareholders, employees and consumers. We believe in our vision and courage to lead the industry to higher standards."
He praised the government's economic policies, saying that the government's policies were conducive for investment both local and foreign. He said energy business was a difficult business but a good one, too. "However, only those having competitive edge will be able to survive in this business," he added.
He said that the business of imported LNG is viable in Pakistan because it is cheaper than furnace oil. Supporting the Iran-Pakistan-India gas pipeline project, he said this project is vital for all the three countries. "Our commitment is to meet energy requirements. In a record period of five months, the group has set up a 136MW power plant," he added.
Ahmed, who is also World Punjabi Organisation President, Pakistan Chapter, said peace was vital for both India and Pakistan. Both countries should make efforts for ensuring lasting peace in the region. He also supported exhibition of Indian films in Pakistan.
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