Engro Corp Plans Second LNG Terminal in Pakistan

Engro Corp plans to build a second LNG terminal in Pakistan with a capacity of around 400 to 600 million cubic feet a day.

According to Express Tribune, a local newspaper, the move is part of company’s plan to diversify further into the energy sector. Engro’s core business is in the fertiliser sector. In addition to the LNG terminal it is looking to build a 450MW LNG power plant worth $700 million.

Engro Corp currently operates Pakistan’s first FSRU through Engro Elengy Terminal Private Limited (EETPL). The LNG terminal, utilising Excelerate's technology, is first of its type for the country and has been built at a cost of $125 million. The terminal has peak capacity for regasification of up to 690 mmcfd of LNG which provides for surplus capacity setup. The terminal received its first shipment in March 2015.

Earlier this month, Express Tribune reported that terminal, which is located at Port Qasim, has so far regasified and pumped over 77 billion cubic feet of gas (bcf) into the national gas distribution network. According to Amir Mahmud, terminal manager of Engro Elengy Terminal Limited, a total of 1.7 million tons of LNG has been imported so far.

Pakistan has been facing severe gas shortage since last few years. To augment energy supplies, Pakistan has stepped up effort to attract foreign as well as domestic investment, especially in the oil, gas and LNG sectors. The government recently approved the construction of Russian funded North-South gas pipeline. The pipeline will start from Nawabshah and end at Kasur, near Lahore.

Islamabad has also attracted Chinese investment in LNG terminal and other pipeline projects. The Pakistani economy has been facing severe shortage of natural gas which has led to frequent power outages affecting industrial activity. To fill up the gap it has commenced import of LNG mainly from Qatar. Earlier this year, Islamabad and Doha signed a long term LNG contract after prolonged negotiations