LNG terminal deal signed

Terminal at Port Qasim will handle 400-500 mmcfd of gas imports.


October 07, 2011

ISLAMABAD:


An agreement on the construction of first liquefied natural gas (LNG) terminal, to handle imports of 400-500 million cubic feet per day (mmcfd) of gas, was signed here on Friday in an effort to overcome energy crisis and lessen growing dependence on expensive furnace oil.


Overseas Private Investment Corporation – an American company – and Pakistan Gasport Limited inked the agreement at a ceremony, attended by Federal Finance Minister Dr Abdul Hafeez Shaikh and Federal Port and Shipping Minister Babar Ghauri.

Work on the $166 million project will start by January 2012 and it is expected to be completed in one year. The terminal will be built at Kaderio Creek, Port Qasim Karachi.

The terminal will have a fuel storage and regasification unit connected via a sub-sea pipeline to an onshore metering station.

“With growing demand of energy, the country desperately needs to import electricity and gas in order to provide power and other facilities to people at cheaper rates,” Shaikh said while talking to the media after the agreement signing ceremony.

He said the private sector could play its role in meeting energy needs and what the government could do was to facilitate the private sector and help remove hindrances in its way.

Shaikh said after completion of the project the country would be able to handle 500 mmcfd of LNG which would help reduce the cost and shortage of energy.

Babar Ghauri said this project was the first of three projects and work on the other two would also start soon in order to eliminate energy shortage.

Published in The Express Tribune, October 8th, 2011.

COMMENTS

Replying to X

Comments are moderated and generally will be posted if they are on-topic and not abusive.

For more information, please see our Comments FAQ