Pakistan inks deal with Singapore firm for LNG supply

Published: September 27, 2019
Representational image. PHOTO: REUTERS

Representational image. PHOTO: REUTERS

ISLAMABAD: Universal Gas Distribution Company (UGDC), set up by compressed natural gas (CNG) station operators, and leading Singapore-based commodity trading company Trafigura have inked a cooperation agreement for terminal capacity handling and supply of liquefied natural gas (LNG).

Trafigura has a long-standing presence in Pakistan as it owns excess capacity, which has not been contracted by Pakistan LNG Terminals Limited (PLTL), at the terminal of Pakistan GasPort Consortium (PGPC). Trafigura will use some of its capacity for LNG import and sell the gas to UGDC. Earlier, UGDC signed an LNG import deal with US energy giant ExxonMobil.

The fresh agreement was signed by UGDC CEO Ghiyas Abdullah Paracha and Trafigura Business Development and Origination – LNG and Gas Head Fadi Mitri.

A Petroleum Division spokesperson stated that currently two LNG regasification terminals were operational in the country. At the first terminal, Engro Elengy Terminal Private Limited (EETPL) is the operator whereas Sui Southern Gas Company (SSGC) is the customer. At the second terminal, PGPC is the operator and PLTL is the customer.

Total peak LNG handling capacity of terminal one is 690 million cubic feet per day (mmcfd) while SSGC has contracted regasification capacity of 630mmcfd with peak capacity at 690mmcfd.

Total handling capacity of terminal two is 750mmcfd, out of which PLTL has contracted capacity of 600mmcfd with peak capacity at 690mmcfd. There is spare capacity at the PGPC terminal for which the private sector is negotiating with PLTL for access to that capacity.

Speaking on the occasion, Paracha said according to the July 2019 decision of the Economic Coordination Committee and the cabinet’s decision of August 2019 the private sector could utilise additional capacity of LNG terminals.


Published in The Express Tribune, September 27th, 2019.

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