Engro signs loan deal for LNG terminal

KARACHI: The World Bank and Asian Development Bank (ADB) agreed to co-finance the Pakistan’s premier liquefied natural gas (LNG) import terminal of Engro, which has already been built at the total cost $125 million, said a company’s statement on Tuesday.
According to the statement, Engro Elengy Terminal Private Limited signed a loan agreement with the International Finance Corporation, a member of the World Bank Group and ADB for its Elengy terminal at the Port Qasim.
“The LNG terminal is a first of its type and has been built at a cost of $125 million in a world record time of 332 days,” it said.
“The terminal – which is also one of the most cost-efficient terminals in the region – has the peak capacity for re-gasification of up to 690 mmcfd (million metric cubic feet/day) of LNG.”
The statement said the terminal received its first shipment on 26 March and so far has received a total of nine cargos.
“The terminal utilises a floating storage and re-gasification unit (FSRU) provided by US-based Excelerate Energy, and is expected to handle up to 4.5 million tons of LNG every year, which will help ease the country’s crippling power shortages and reduce its reliance on expensive diesel and heavy fuel oil imports,” it added.
“The FSRU shuttle has saved approximately $2.6 million to the national exchequer.”
Khalid Subhani, chief executive officer at Engro Corp said importing natural gas is a more economically viable source for power generation, especially when indigenous gas resources are diminishing.
“The new facility will also help diversify fuel supply mix and open one of the largest gas markets in Asia to the global LNG market,” Subhani added.
“The company has fulfilled its commitment by constructing all infrastructure facilities in a record time. We are hopeful that the commissioning of the country’s first LNG terminal will help meet the rising demand of gas, fuel economic growth and help alleviate the energy crisis that continues to impede industrial growth.” The company’s statement said three million tonnes per annum of LNG, generating 400 mmcfd of re-gasified LNG, will cost below $1.5 billion at today’s Brent linkage.
It added that this RLNG will replace more than $2.5 billion worth of diesel and low sulfur fuel oil usage, resulting in sustained annual savings of one billion dollar.