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Pakistan's Engro eyes 2019 start for new LNG terminal in Karachi

From Reuters - November 4, 2017

KARACHI, Nov 4 (Reuters) - Pakistani conglomerate Engro Corp expects to complete building its second liquefied natural gas (LNG) terminal in early 2019, a senior company official said, as Pakistan bets heavily on LNG imports to curb energy shortages.

Engro built Pakistans first LNG terminal in 2015 and is now finalising plans with Royal Dutch Shell, Fatima Group and trading house Gunvor for another terminal with capacity of 4.5 million tonnes per year.

Pakistan has become a hot destination for global energy giants, with producers such as Exxon and traders like Vitol seeking partners to build terminals after Prime Minister Shahid Khaqan Abbasi re-oriented Pakistans energy policy towards gas.

A second terminal is due to come on line later this month, easing gas shortages that have hobbled Pakistans manufacturing sector and wider economy for more than a decade. Private companies are racing to build several other terminals.

Jahangir Piracha, chief executive of Engros LNG unit, Elengy Terminal Pakistan, said his consortium expects to sign a final investment decision (FID) in the next few months and would then build the terminal in about a year.

The technical studies are all done. We are looking at early 2019 (to complete the project) if everything goes right, Piracha told Reuters in Karachi this week.

A rival LNG terminal project by a six-member consortium that included ExxonMobil and Qatar Petroleum, appears to be in trouble after the American company pulled out, Pakistani officials said. ExxonMobil, however, remains very keen on Pakistan and is looking at other terminal projects.

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