SINGAPORE: Pakistan is taking another step towards becoming a key buyer of liquefied natural gas (LNG), signing a deal to purchase a Floating Storage and Regasification Unit (FSRU) for its second import terminal.
Singapore’s BW Group said in a statement on Monday that it would deliver the FSRU to Pakistan GasPort Limited (PGPL) in the fourth quarter, as well as providing the terminal at Port Qasim with LNG regasification services in a 15-year agreement.
The country has been earmarked as an up-and-coming demand outlet for the oversupplied LNG market. Along with Egypt and Jordan, Pakistan was a newcomer to the LNG import market in 2015, helping drive up demand and absorb growing world supplies from a wave of new projects.
The new import terminal will be able to receive 600 million cubic feet of natural gas per day and is expected to be commissioned for operations by mid-2017.
The terminal will reduce Pakistan’s gas deficit by 30pc and ensure fuel for 3,600 megawatts of new power generation plants being constructed, said PGPL chairman Iqbal Ahmed. Pakistan started up the 3.5m tonnes per year Engro Elengy LNG terminal, the country’s first LNG import facility, in Port Qasim last March.