Second LNG FRSU to reach next year

KARACHI: Pakistan is likely to receive its second floating storage and re-gasification unit (FSRU) of liquefied natural gas next year, a bit delayed as against the planned delivery by the end of 2016, an official said on Monday.

“The FSRU will arrive in May 2017,” said Iqbal Ahmed, chairman of privately-held Pakistan Gasport Limited (PGPL), which won a government contract to build the country’s second liquefied natural gas (LNG) terminal.

“We have been given the tolling tariff of 41.77 cents/mmbtu (million metric British thermal unit), while the government will arrange LNG. We will achieve commercial operation date by June 30, 2017.”

In August, Singapore-based BW Group signed a 15-year agreement with PGPL to provide LNG regasification services, utilising a FSRU for the country’s second LNG terminal at Port Qasim, Karachi.

Earlier, BW Group had announced that the floating storage and re-gasification unit would reach Pakistan in the fourth quarter of 2016.  

“Everything is on schedule,” Lisa Lim at BW Group told The News over telephone. 

Lim, however, refused to disclose the exact date.

BW’s FSRU, namely Hull No. 2118, is currently at Samsung Heavy Industries in Korea. 

The vessel offers a low environmental footprint and high efficiency with a storage capacity in excess of 170,000 cubic meters and a peak regasification capacity of 750 million metric cubic feet/day.

Pakistan, largely dependent on imported fuels, will be importing a cumulative three billion cubic feet/day (bcfd) of LNG by 2018 to bridge the demand and supply gap, which has already crossed the four bcfd mark.

Pakistan is already importing 0.6 bcfd of LNG. Another 0.6 bcfd will be added by June, followed by 0.6 bcfd in July 2017, taking the total LNG imports to 1.8 bcfd. 

With the two private sector terminals to be commissioned in 2018, the country’s total gas imports will reach three bcfd.

Presently, the government is negotiating with six countries, including Russia, Malaysia, Oman, Azerbaijan and two other countries to import LNG.  

Engro’s LNG terminal is already operational, while PGPL’s terminal will be ready by June 2017 and third by July 2017.