If govt allows second LNG terminal by PGPL: 750mmcfd gas in 10 months possible

ISLAMABAD: Amid the gas crisis across the country, Pakistan Gas Solutions Limited (PGSL) has once again come up with its offer of fast track gas availability of up to 750 mmcfd in 10 months if the government gives a go ahead for initiating construction work on its second LNG terminal of$500 million at Port Qasim.

The second LNG terminal by the Pakistan Gas Port Limited (PGPL), in collaboration with Fauji Oil Terminal Distribution Company Ltd (FOTGO), will be established at Mazhar Point, Port Qasim.

“The project, upon commissioning, shall be saving around US$ 1 billion per annum in import substitution in comparison to furnace oil, create large employment and make affordable energy available to the industry which is their long-standing demand. And the project will be completed in 10 months from its start with no government guarantees and the entire funding is expected to be made from abroad and has been firmed up.”

“The land has already been leased and rent is being paid for many years. More importantly, all requisite studies are ready and so much so the pipeline capacity for evacuation of RLNG from terminal to SSGC Delivery Point has already been developed. A construction contract for LNG Terminal-II of PGSL has been signed with a Chinese company. Under the undertaking from the EPC contractor, the project will be completed in 10 months from ground-breaking. The project has been funded through equity and requires no government guarantees for off-take of gas. The entire risk is being taken by the sponsors.”

This all has been disclosed in a letter of Pakistan Gas Solutions Limited written on June 17, 2021 to secretary Petroleum.

“Despite repeated requests in writing, Port Qasim Authority (PQA) continues to deny our contractor’s access to the site or allow the FBMS (Full Bridge Marine Simulation Study) to be conducted,” says PGSL in the letter. The PGCL also urged the PQA to honour the already signed Implementation Agreements and allow the US$500 million project to proceed forward immediately.

In a letter to secretary petroleum dated June 17, 2021, Pakistan Gas Solutions Limited (PGSL) said: “All geophysical and other needed studies have been completed, except for one computer-based study — Full Bridge Marine Simulation Study (FBMS), which is to be done by Lloyd’s of London, at our cost, but requires the participation of Port Qasim Authority (PQA), which has been withheld to date."

Pakistan Gas Solutions Limited has obtained the no objection certificate (NoC) from the Ministry of Defence and the PQA Board.