PM inaugurates Port Qasim LNG terminal

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APP54-27 KARACHI: August 27 - Prime Minister Shahid Khaqan Abbasi addressing at the inauguration ceremony of first LNG Terminal at Engro Elengy Terminal Ltd. APP

KARACHI, Aug 27 (APP): Prime Minister Shahid Khaqan
Abbasi Sunday inaugurated Pakistan’s first Liquified Natural Gas (LNG) terminal at the Port Qasim.
It was Pakistan’s first LNG terminal established by Engro Terminal
Limited within a record time period of 330 days and a capacity to re-gasify up to 600 mmscfd.
Speaking at the ceremony, the prime minister said that
the government brought this inexpensive source of energy to
the country in record time.
He said the previous three governments made several
attempts to introduce LNG source of energy but failed.
Within eleven months of the contract signed, the
terminal started functioning which was an example of
cooperation between the government and the private sector, he
added.
The prime minister said other source of energy like oil,
hydel and nuclear were considered as expensive means as the
country required an integrated and efficient source to
overcome its crippling energy needs.
The bids for the whole process were completely
transparent and world acknowledged government’s efforts in
this regard, he added.
He said the world was thinking that the project would
take several years but the government succeeded by
introducing the LNG based energy.
The prime minister said within the short span of the
PML-N government, the first LNG terminal system had started
working.
The completion of terminals was necessary for supply of
energy, he said and thanked the concerned authorities for
making the task possible.
He said no terminal in the world had been completed in
the shortest time with full re-gasification facility.
The prime minister said the terminal has so far handled
100 LNG cargo ships with 6.1 million tons of LNG.
It would benefit power, fertilizer, textile and other
industries from huge supplies of Regasified Liquefied Natural
Gas (RLNG), he added.
He said with capacity to inject 600 mmscfd RLNG in the
system, Engro terminal emerged as the single largest gas
source in Pakistan.
With the supply of RLNG, the country was saving about
$1.5 billion each year when compared with other expensive
energy resources like diesel or furnace oil,he added.
The prime minister said with supply of RNLNG, the CNG
sector had been revived with ample supply of power for the
fertilizer industry.
He said the second terminal would start functioning in
November this year followed by at least two other terminals in
the private sector.
The prime minister said it was a good step for the
private sector to participate and build their own terminals
keeping in view the largest demand and market.
Expressing his confidence, the prime minister said
Pakistan energy issues would be resolved soon and termed the
inauguration of the terminal a great success in the right
direction.
It was Pakistan led and owned project for energy
solution which was made possible within shortest time when
compared with other countries of the region including
Bangladesh.
Later, the prime minister speaking at another briefing
ceremony of PGP’s LNG project terminal, said that it would be
inaugurated in November this year.
He said the government was fixing the power crises of
the country and soon the load-shedding would be a thing of the
past.
He said it was all possible due to the huge contribution
by LNG sector and referred to Engro terminal with re-gasify
capacity of 600mmscf and 100 per cent capacity by utilizing
4.5 million tons of LNG.
The prime minister expressed his confidence that soon in
2018, the terminals in the country would be able to utilizing
9 million tons of LNG for the next five year.
He said it was all possible due to synergy of these
terminals, great efficiency and the cheapest lowest gas term
contract in the world.
The prime minister said the LNG market was much larger
and competition was hard so it was a ‘win win situation’ for
the private sector, government and the people.
The private sector would be bringing in their own LNG,
regasifying it and delivering it to customers through third
party access regime which had already been put in place, he
said, adding thus, there would be a system in which customers
would be free to opt for purchase of LNG on their own.
The prime minister said the government would stay out of
buying LNG and building terminals as it would be done by the
private sector.
The government would step in only when the private
sector failed to meet the demand, he added.
He said the LNG community in the world had already
appreciated government’s efforts in this regard.
The government’s vision was to deliver LNG in any
quantity to any customer in any part of the country and eyeing
complete replacement of furnace based energy plants in 2019.
The prime minister termed LNG import ‘a game changer for
Pakistan’ as the fifty per cent primary supply for energy was
being made from gas.
“Nawaz Sharif had decided not to go for ground breaking
of the projects but for completion of projects,” he said and
referred to long awaited completion of Lowari Tunnel.
The prime minister said the PML-N government was for
completion of projects despite the political upheavals.
He said the second LNG project was an equity based with
no debt on the project, reflecting confidence of the
investors.
The prime minister announced that the government did not
invest a penny in these projects rather it was upto the
private parties. It had only leveraged their demands and
ensured transparent bids.
The investing companies would not get a penny unless
they started delivering gas.
The asset value for the second LNG project must be over
$300 million and that too for the fifteen years as projects
spoke for themselves, he added.