The Standing Committee of Senate visited Engro's proposed LNG terminal site on Thursday to review and discuss the progress on Pakistan's first LNG import infrastructure. While giving a briefing, Elengy Terminal Pakistan Limited (ETPL) appraised the delegation of the project's status and stated that ETPL has not commenced any construction activity for LNG terminal at site as of date. Only basic engineering and procurement activities have been initiated.
These activities are necessary for timely completion of this fast project requiring commissioning in 335 days for which 280 days are left. The activities for construction of temporary site facilities have also been initiated. Construction equipment and machinery is being mobilised and dredger and piling barges are expected to arrive on site by end of July.
ETPL has been issued the licence by the Oil and Gas Regulatory Authority (Ogra) to construct a terminal at Port Qasim (PQ) for landing and re-gasification of liquefied natural gas (LNG) to be imported early next year. ETPL has also obtained NOC from the Ministry of Defence and now has all the prerequisite approvals as per the LNG Policy 2011 for carrying out the construction works at site. PQA Board has approved and additionally MP&S has approved IA.
Engro has been in terminal business for more than 16 years now and it is to be noted that all risks are with ETPL. That is why due diligence by LNG suppliers has proactively been initiated to ensure that ETPL meets all applicable international LNG standards. ETPL is bound to set up the terminal in 11 months with delay penalty of USD 150,000 per day and establishment of the terminal will replace furnace oil consumption in power plants thereby reducing power tariff and will help alleviate the energy crisis in the country.
Comments
Comments are closed.