THE BANK of Punjab is proud to be the lead financial advisor to Pakistan Gas Port Consortium Limited (PGPC) and has provided it with Letter of Credit facilities to ensure the timely and successful completion of the country's second LNG terminal. The inauguration of PGPC's LNG Import terminal at Port Qasim, Karachi, is a signal achievement for its team and partners, and for the country.
About half of Pakistan's energy mix is based on natural gas. With local reserves depleting and new recoveries slow and inadequate for meeting existing, latent and projected gas demand, LNG is the only economical and viable solution for Pakistan's fuel needs and economic growth both in the short term, with FSRUs allowing for the fast track setting up of terminals, and in the long run.
Pakistan has been strategically responsive and capitalized on the supply glut in the international LNG market. It has thus ensured the availability of clean, imported natural gas at highly competitive prices. The Government of Pakistan has encouraged the private sector to invest in import terminals and charge a tolling fee for the supplies that state owned companies like Pakistan LNG Limited (PLL) bring in.
The Government of Pakistan's competitive bidding processes -both for LNG supplies and for tolling terminals - overseen by highly reputable international consultants resulted in PGPC providing its LNG storage and regasification services to state owned Pakistan LNG Terminals Limited (PLTL) at the rate of $6.4177/mmbtu. This is one of the most competitive tariffs in the world. The result is savings for the national exchequer on top of the estimated $2 billion per annum in foreign exchange savings from fuel substitution.
Affordable fuel increases competitiveness across the economy. With the availability of cheaper and cleaner fuel Pakistan's competitiveness increases, leading to overall economic revival. PGPC's state-of-the-art, FSRU -based terminal - in which some of the world's leading LNG companies are involved will add up to 750mmsctfd of' RLNG to the gas grid. Significantly reducing the country's gas deficit and ensuring uninterrupted fuel supply for up to 4,800 megawatts of new RLNG-based, combined-cycle power plants being established by the federal and provincial governments.
"I wish to praise the management team of PGPC for their determination and untiring efforts to make the terminal a reality," said Mr. Naeemuddin Khan, President of the Bank of Punjab. "The sponsors of this project have a long relationship with the Bank of Punjab and the setting up of this project, in record time, is a tribute to their entrepreneurial skills." Mr. Khan added: "I would also like to take this opportunity to especially congratulate our Honorable Prime Minister Mr. Shahid Khaqan Abbasi, who has been steadfast in his resolve to serve the nation by resolving Pakistan long-running energy crisis." The Bank of Punjab is committed to supporting projects of national importance, such as the PGPC terminal, that fuel the national economy and build up infrastructure and industry. PGPC's success will be Pakistan's success.