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Pakistan selects five consortiums to triple its LNG import capacity

The Ministry for Petroleum of Pakistan has selected five developers to set up LNG import terminals to triple the country's import capacity. The consortiums shortlisted to build the 5 LNG terminals are Tabeer Energy, a unit of Mitsubishi Corp; Exxon and Energas; Trafigura Group and Pakistan GasPort; Shell and Engro Corp; and Gunvor Group and Fatima.

The designated groups must submit technical and financial details by early November 2019, as well as a US$2m concession fee. A further U$8m will be payable to the government on the signing of implementation agreements. The operators will finance the construction of regasification terminals and find buyers for the gas, paying Pakistan a royalty of US$1.90/t. The country will construct a US$2bn north-south pipeline to distribute the gas and storage facilities.

Two Floating Storage and Regasification Unit (FSRU) are currently in operation: Elengy Terminal Pakistan Limited (ETPL, a subsidiary of Engro) started a FSRU of  6.5 bcm/year in 2015, while Pakistan GasPort commisioned its 6.75 bcm/year facility in 2017.