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January 31, 2020

Excelerate, Engro Elengy agree to expand LNG terminal

Business

January 31, 2020

ISLAMABAD: Excelerate Energy LP and Engro Elengy Terminal Ltd (EETL) have signed a Head of Agreement under which Excelerate will exchange the existing floating storage and regasification unit (FSRU) with a new one in April this year, a statement said on Thursday.

The new build FSRU, Hull 2477, is currently under construction at Daewoo Shipbuilding and Marine Engineering (DSME) shipyard. It will increase EETL's send-out capability by more than 150 million standard cubic feet per day (MMscf/d) and increase its LNG storage capacity from 150,900 cubic meters to 173,400 cubic meters.

“Excelerate will take delivery of Hull 2477 in April of this year, and EETL projects beginning expanded operations in Pakistan before winter 2020,” Engro said in its statement.

“We are proud to partner with Engro and Vopak on this expansion to help meet the growing demand for natural gas in Pakistan. We continuously work with our customers to ensure our terminals adjust to the changing needs of their markets,” the statement quoted Daniel Bustos, Excelerate Chief Commercial Officer as saying.

“In the nearly five years of essentially non-stop operations in Pakistan, we have a proven track record of safe and reliable operations at peak performance,” Bustos said.

CEO of EETL Jahangir Piracha said, “Excelerate Energy has been an excellent partner who has made it possible for EETL to cater to such a high level of utilisation of our regasification capacity. It is our trust in their operational excellence that we are now jointly undertaking the expansion of our terminal”.

The EETL terminal, Pakistan’s first floating LNG import terminal, began operations in March 2015. The terminal, which utilises Excelerate's FSRU Exquisite, has been delivering up to 690 MMcf/d of natural gas directly into Sui Southern Gas Company’s natural gas pipeline system. The Exquisite currently fulfills as much as 15 percent of Pakistan's domestic daily natural gas requirements and is recognised as the most utilised FSRU worldwide. EETL has handled over 275 LNG cargoes to date.

EETL is a joint venture between Engro Corporation and Royal Vopak of the Netherlands. In September 2019, Excelerate and Maran Gas Maritime Inc (MGM) signed a five-year bareboat charter agreement for Hull 2477. Excelerate has the option to purchase the FSRU at any time during the duration of the contract.