Bahria Foundation is all set to construct Re-gasified Liquefied Natural Gas (RLNG) terminal at Sonmiani, to be connected through Hub-Nawabshah gas pipeline project, without any public funding, well-informed sources told Business Recorder.
The Abbasi-led administration was pursuing a multi-pronged approach to overcome energy crisis as well as to mitigate the supply-demand gap in the country. Among various options being considered, LNG was a key component. Various LNG terminals are being installed at different locations near Karachi. Bahria Foundation is also planning to develop LNG re-gasification terminal at Sonmiani named as Bahria Foundation LNG Terminal Project (BFLTP).
Bahria Foundation, a charitable trust functioning under the Endowment Act 1890, requested Inter State Gas Systems (Pvt) Limited (ISGSL) to construct pipeline connecting the LNG terminal at Sonmiani to Nawabshah capable of transporting 700 to 1,200 MMCFD high pressure RLNG which will further be transported to Lahore. The total length of pipeline was approximately 310 kilometers.
The project will comprise the pipeline system consisting of pipeline, metering station, main line block valve stations, pig launching and receiving stations, CP installation, SCADA system, other related equipment/installation and pipeline crossing across various canals/water ways, rivers including River Indus, railway tracks and roads. The life span of the project will be 40 years.
The proposed pipeline route which starts from Hub to Dureji (158 KMS) mainly follows Dureji road and meets Iran Pakistan Gas Pipeline route near Dureji. From Dureji to Nawabshah (152 KMS) it follows the proposed Iran Pakistan (IP) gas pipeline route till Nawabshah.
The project was proposed to be implemented if Bahria Foundation takes a lead role in the Hub- Nawabshah LNG terminal and gas pipeline project by assuming responsibility for the purchase and sale of LNG/RLNG. Bahria Foundation while taking the lead will carry out a feasibility study and share it with all stakeholders and will pay tariff to ISGS for the Hub-Nawabshah gas pipeline project under the transportation agreement on take-or-pay basis for the life of the pipeline. ISGS will develop the Hub Nawabshah project on EPC+F/BOOT basis either through open competitive bidding and/or under the G-G arrangements. Similar arrangements can be made with Sui companies for using their part of the pipeline segment.
The proposed project is expected to fetch following benefits: (i) the project will play a key role in mitigating the energy crises across the country apart from creating the job opportunities for the masses; and (ii) since all LNG terminals and gas infrastructure projects are being built at Port Qasim Karachi the proposed Bahria Foundation terminal at Sonmiani will provide an alternate location for setting up of LNG terminals and other oil and gas installations.
The sources said the Abbasi led administration has approved the gas pipeline connectivity project from Sonmiani to Nawabshah by ISGCL subject to carrying out the feasibility study by Bahria Foundation as the leader of the project.
It has also been decided that the project would be executed after fulfillment of Ogra's requirements in this regard and without any public funding.
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