Pakistan’s second LNG terminal starts commercial operations

Published: December 27, 2017
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LNG Terminal. PHOTO: REUTERS

LNG Terminal. PHOTO: REUTERS

ISLAMABAD: Pakistan’s second liquefied natural gas (LNG) import and regasification terminal has started receiving commercial LNG cargoes, as required under the Operation and Services Agreement with state-owned Pakistan LNG Terminals Limited.

“The terminal is operating at the designed capacity of 600 mmcfd (million cubic feet per day) and has been tested at 750 mmcfd,” terminal operator Pakistan GasPort Consortium (PGPC) said in a statement on Tuesday.

While fulfilling the contractual obligation, PGPC said the terminal had been offered for ‘acceptance tests’ to Pakistan LNG Terminals, which would be completed this week.

With the commencement of gas supplies to consumers from the terminal, inaugurated in the second half of November, there had been a marked reduction in power outages and increased gas availability for domestic, commercial and industrial consumption, it claimed.

First LNG terminal receives 120 shipments

Operations at the terminal were suspended for a few days after a leak in an insulation joint connecting the terminal to the pipeline infrastructure. Later, the leak was plugged, the joint was replaced and the system was re-pressurised.

Prime Minister Shahid Khaqan Abbasi had inaugurated the terminal on November 20 at Port Qasim, claiming Pakistan would have surplus gas after the facility started receiving LNG imports. It received the first LNG cargo on Nov 24. The terminal represents an investment of about half a billion dollars by PGPC in the jetty and marine works, Norway’s BW Group in the brand new and state-of-the-art Floating Storage and Regasification Unit and Fauji Oil Terminal and Distribution Company (Fotco) in the pipeline infrastructure from the jetty to the national gas grid.

Xinjiang Petroleum Engineering Construction Company led a Chinese consortium that built the terminal and its construction and commissioning was supervised by independent international consultants to ensure quality work and safe operations.

Already, the first LNG terminal, also at the Port Qasim and built by Engro Corporation, has been running for the past more than two and a half years and has enhanced its handling capacity to 600 mmcfd.

Published in The Express Tribune, December 27h, 2017.

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