PM to visit LNG terminal at Port Qasim tomorrow

LAHORE: Prime Minister Shahid Khaqan Abbasi is scheduled to visit the site of his pioneering energy initiative, Pakistan’s first Liquefied Natural Gas (LNG) terminal, at Port Qasim tomorrow (Sunday), sources said on Friday.

“It would be Abbasi’s first visit to the terminal in the capacity of Prime Minister. He had visited the terminal few times in the capacity of federal minister of petroleum and natural resources,” a source in the ministry told The News.

“It was his ministry that took the initiative of building the country’s first LNG terminal under private sector at Port Qasim. It was completed in record time under his direct supervision. Prime Minister would also visit other terminals and facilities at PQA.”

The source said that PM was passionate about the project and considers it one of the biggest achievements of his tenure as petroleum minister. “He knew that long-term LNG purchase agreements with any buyer were not possible without building a fully functional LNG terminal in the country,” the source added.

The official added that this project was a pre-requisite to link the huge domestic gas network with the world through LNG terminal with a view to ending chronic shortages.

“The long-term LNG purchase deal with Qatar became possible only due to Abbasi’s personal interest and tireless efforts in the scenario when vested interests were terming it an expensive and loss making decision,” the official said.

The first LNG terminal was built in record time of 335 days with an investment of $130 million by Engro. The terminal has so far handled 100 LNG cargo ships with 6.1 million tons of LNG and is bridging the national natural gas deficit by 20-25 percent. The benefits to power, fertiliser, textile and other industries from Regasified Liquefied Natural Gas (RLNG) supplies are huge. With capacity to inject 600 mmscfd RLNG in the system, Engro terminal emerges as the single largest gas source in Pakistan leaving Qadirpur and Sui Gas fields behind.

Another source said that successful commissioning and operations of first LNG terminal has paved the way for new terminals. “The second terminal is under construction at Port Qasim and is likely to become operational by the end of year,” the source said. The same official source also confirmed that Engro Elengy Terminal Limited (EETL) was planning to construct another terminal at Port Qasim with a capacity to regasify another up to 600 mmscfd in collaboration with Shell and Fatima Group.

The sources inside the ministry of petroleum were unanimous that efficient operation of the terminal was vital to accelerating national energy independence and economic revival. “The terminal is providing round-the-clock supply of natural gas at a utilization rate of 100 percent for the Floating Storage and Regasification Unit (FSRU),” one of the sources informed The News.

One source claimed that this achievement makes it the only FSRU in the world that was operating at such high re-gas rates. “With the supply of RLNG, Pakistan is saving about $1.7 Billion each year due to fuel savings if compared with Diesel,” the source added.

The LNG, a source said, was not only considered the cleanest hydrocarbon on the planet but it was more efficient in power generation with 60 percent efficiency on RLNG vs 45 percent on alternate fuel.

Ever since the induction of LNG into country’s gas distribution network, the government has brought 2,200 MW of power generation online by switching it from expensive liquid fuels.

This infrastructure breakthrough has enabled the government to address the
energy crisis through new investment in gas fired power plants for additional
3,600 MW power generation capacity.