PQA to acquire four tugs on two-year lease in March

KARACHI: The Port Qasim Authority (PQA) is all set to acquire four towing tugs on two-year lease to handle liquefied natural gas (LNG) tankers expected to be anchored at the port in March, official sources said on Saturday.
“The PQA is acquiring three 75 bollard power tugs and one 85 bollard power escort tug for the upcoming FSRU LNG Terminal at the port,” the official, requesting anonymity, said.
The official said the port would pay around $25 million as leasing costs of four tugs for two years.
“The tugs will be available from the March 1st and the daily rent of 75 bollard pull tug is $8,600 while 85 bollard pull tug will cost $8,900/day,” he added.
The official said port authority has followed all the rules and procedures in acquiring the tugs. “It is also the need of the hour to upgrade PQA fleet for handling floating storage regasification unit (FSRU) LNG terminals,” he said.
Pakistan’s energy crisis, which has become such a pressing need that the country is knocking on every door, has warranted a number of LNG projects.
The energy-starved country, in 2014, endorsed a fast-track LNG import project in Port Qasim with a target start-up date somewhere in the first quarter of 2015. The project is led by Karachi-based petrochemical conglomerate Engro, which has teamed up with US FSRU provider Excelerate Energy.
During the first year of operation the terminal would have capacity to regasify 200 million cubic feet/day, or 2.1 billion cubic metres/year. From the second year, this will be expanded to 400mcf/day, equivalent to 2.9mtpa.
Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi is reported to have said the country would be receiving the first LNG shipment on March 31.
The official said the PQA is all set to handle country’s energy requirement and ready to facilitate energy terminals at the port.
Those tugs were available only with two reputable international marine service companies — Denmark’s Svitzer, the world’s biggest tugboat operator and Smit Lamnalco - a joint venture between Dutch Boskalis and United Arab Emirates-based engineer Lamnalco, the official added.
“However, Smit Lamnalco has qualified the bid and Port Qasim Authority is acquiring tugs from them,” the official said.
The official said the port authority has also approached Karachi Shipyard and Engineering Works Limited (KSEW) to build four tugs, including three 75 bollard powered and one 85 bollard power tugs for the Port Qasim Authority.
“The order will cost $95 million to the PQA, which it will pay in five years time.”
The project will jointly be handled by KSEW and Dutch firm Damen Shipyards Group. Damen will provide the kit and expertise, while the KSEW will assemble the tugs at its Karachi facility.