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February 15, 2020

Engro Elengy plans to increase regasification capacity

Business

February 15, 2020

ISLAMABAD: Pakistan’s first LNG import terminal will give a major boost of 150 million metric cubic feet/day (mmcfd) to its re-gasification capacity as it planned to upgrade existing floating unit to meet the country’s growing energy needs, its top official said on Friday.

Engro Elengy Terminal Chief Executive Officer Jahangir Piracha announced the signature of heads of agreement (HOA) with Excelerate and Shell for the expansion of the terminal.

The EETL terminal is a joint venture between Engro Corporation and Royal Vopak of the Netherlands. The floating liquefied natural gas (LNG) import terminal, which began operation in March 2015, from Port Qasim, currently fulfils as much as 15 percent of the country’s daily natural gas requirements. EETL has so far handled over 280 LNG cargoes to date.

“The current FSRU (floating storage regasification unit) will be replaced by a new vessel before the winter of 2020, increasing EETL’s send-out capability by over 150 mmscfd,” Piracha said, addressing the ‘Pakistan Energy Reform’ conference. The existing terminal is recognised as the most utilised FSRU worldwide.

The HOA gives Shell access rights to the added capacity and enables it to bring in LNG imports from its global portfolio of competitive and reliable supply to help meet the country’s growing demand for natural gas.

Marcus Hector, general manager of LNG Market Development Shell, said the supply of natural gas, the cleanest-burning fossil fuel, could help meet Pakistan’s growing energy needs.

“With this agreement, we are excited to be able to bring more reliable LNG into the country from our leading global supply portfolio and look forward to continued support from the government, regulator and pipeline company to enable us to do so,” Hector said. Pakistan is amongst the fastest growing LNG importers globally, with last year’s imports increasing by over 14 percent to help overcome energy shortages.

Natural gas has a vital role to play in providing flexible, securing and cleaner energy and LNG is a quick and flexible solution to enable countries with declining domestic gas production to meet their energy needs.