AWARDED THROUGH an international competitive bidding process, the LNG import terminal established by Pakistan Gasport Consortium Limited (PGPC)-the wholly owned subsidiary of Pakistan Gasport Limited (PGPL)-represents an investment of about $500 million.
The 750mmscfd terminal at Mazhar Point, Port Qasim, will provide LNG storage and regasification services to state owned Pakistan LNG Terminals Limited (PLTL) of up to 600mmscfd for 15 years at a tariff of $0.4177/mmbtu. The terminal's surplus regas capacity of 90mmscfd will be made available to the private sector.
This landmark terminal has been set up in collaboration with the BW Group as the Floating Storage and Re-gasification Unit (FSRU) provider and operator, Fauji Oil Terminal and Distribution Company Limited (FOTCO) as the pipeline owner and operator, Trafigura Holdings Limited as an equity partner, and the consortium comprising Xinjiang Petroleum Engineering Company Limited (XEP), Third Harbor Engineering Company Limited and Third Harbor Consultants Company Limited as the EPC Contractor.
The terminal comprises a brand new FSRU, jetty and marine infrastructure, and RLNG pipeline to relay gas from the PGPC jetty to the delivery point on the national has grid operated by Sui Southern Gas Company Limited (SSGC). PGPC's terminal will serve as the principle fuel source for 3,600 megawatts of brand new power generation plants being established by the Government of Pakistan and the Government of the Punjab. It will also yield about $2 billion in annual foreign exchange savings through fuel substitution.
As a reflection of their confidence in the policies of the government, PGPL and Trafigura, the world's largest LNG trader, are developing another LNG terminal at Port Qasim under the aegis of their Pakistan Gas solutions joint venture. This terminal will operate entirely in the private sector. Associated Group (AG), which is the principle sponsor of PGPL, and Trafigura are also developing Pakistan's first refrigerated LPG import terminal, which will also be located at Port Qasim.