The ground-breaking of two important projects, dedicated floating liquefied natural gas (LNG) and dedicated liquefied petroleum gas (LPG) is likely to take place at Port Qasim some time in the last week of this month.
The LNG terminal is being set up by Associated Group and Pakistan GasPort Ltd, and the LPG terminal has been sponsored by KUB Malaysia Berhad (KUB), Progas Energy Ltd (PEL) and National Logistics Cell (NLC). Both projects are being set up on 'build, operate and transfer' (BOT) basis.
The LNG terminal would be completed in 30 months' time at a cost of $160 million and, according to the estimates, total income to PQA in 30 years would be $142 million. The terminal would be able to handle 75,000 dwt vessels and would have capability to handle not less than three million tonnes material per year.
The concession has been granted on non-exclusive basis for 30 years, with PQA retaining its right to offer setting up of similar terminal to other parties at Port Qasim.
The company shall maintain sufficient depth in the channel at all times to accommodate ships drawing draught up to 12 metres. The company will be responsible for the capital dredging of the berthing basin, the approach channel and turning basin for floating LNG terminal.
It shall also be responsible for the maintenance dredging of the berthing basin and maintain the berthing basin only, whereas PQA would be responsible for the maintenance dredging of the approach channel and the turning basin.
The location for dumping of dredging material will be decided between PQA and the Company, based on relevant studies by the company. The cost of capital dredging of turning basin only will be recovered by the Company by paying 50 percent of applicable royalty to PQA in the amount equal to the capital dredging cost thereof, and the Company will not charge any interest, on the amount so adjustable, from PQA.
The implementation agreement was signed with Pakistan GasPort Ltd on April 28, 2007. The LPG terminal is being set up by Progas Pakistan (Private) Ltd, formerly Keloil (Private) Ltd (Malaysian Company). Total cost of the project is $25 million with 62:38 debt equity ratio.
It would be able to handle two million tonnes material and handle 50,000 dwt vessels. The concession has been granted for a period of 30 years on non-exclusive basis. PQA would retain the right to offer setting up of similar terminals to other parties.