June 29, 2020 [The News International] – Elengy Terminal Pakistan, a joint venture of between Pakistan and Dutch companies, has invited expression of interest from local and international parties to set up its first onshore liquefied naturel gas (LNG) terminal with a regasification capacity of 1.2bcfd, it said on Wednesday.
The joint venture planned to design, build, own and operate a multi-functional onshore LNG storage and regasification terminal at Port Qasim. Expression of interest was invited from local and international parties, which intend to secure regasification, storage and other operational services from the onshore LNG project. The onshore terminal is expected to start its commercial operation from 2023.
The project is subject to the final investment decision. The onshore terminal is to be developed under a typical industry open access business model, with a send-out capacity projected up to 1,200 million standard cubic feet per day (mmscf/d) and storage capacity of up to 480,000 cubic meters.
ETPL, the joint venture of global independent tank storage company Vopak and Engro, set up the country’s first floating LNG import facility on a fast track basis in 2015 when Pakistan was facing a severe energy crisis.
“As an extension of our longstanding association with Vopak, we joined hands to create an even greater impact in the energy industry and create shared value for the prosperity of Pakistan,” said Yusuf Siddiqui, chief executive officer of ETPL. “With the energy needs projected to show continued growth, we firmly believe that developing and investing in an onshore terminal is a step in the right direction to ensure flexibility of operations and provide energy security to Pakistan for the coming decades.”
The gap between the supply and demand is expected to increase to the tune of 4.6 billion standard cubic feet per day (bcfd) in FY2022/23 and 6.7 bcfd by the FY2027/28 without the imported gas, said the Oil Gas Regulatory Authority. The country produces around 4 bcfd of natural gas – accounting for 48 percent share in the primary energy mix – against demand of more than 6 bcfd. The demand-supply gap of gas during FY2017/18 was 1.4 bcfd. “This gap is expected to rise to 3.7 bcfd by FY2019/20.
At present, two LNG terminals with 1.2 bcfd re-gasification capacity are operating in the country to mitigate gas demand-supply shortfall.
EETL terminal fulfills as much as 15 percent of Pakistan’s daily natural gas requirements and is recognized worldwide as the most utilised floating storage regasification unit (FSRU).
EETL terminal has handled more than 300 LNG cargoes to date. The RLNG provided through the terminal has reduced the cost of electricity generation by 40 percent and, in turn, boosted productivity and economic growth across Pakistan. The EETL terminal is also undergoing an expansion by replacing the existing FSRU with a newbuild vessel, which will increase its send out capability by more than 150 mmscf/d by the end of this year.
Together with joint venture partners, Vopak LNG own and operate two onshore terminals, the Gate Terminal, located in the port of Rotterdam in the Netherlands, with an annual throughput capacity of 12 billion m3 per annum (bcma) (8.5 mtpa) and Terminal Altamira TLA, situated on the east coast of Mexico, with an annual throughput capacity of 7.4 bcma (5 mtpa). In addition, Vopak LNG are partners in the SPEC LNG terminal, situated in Colombia, which has an annual throughput capacity of 4 bcma (2.7 mtpa.
Together, Vopak LNG have a combined LNG storage capacity of 1,160,000 m3 and a total throughput capacity of 29.9 bcma (20.2 mtpa).
5,100 terminals as per the date of this article. Click on the button and register to get instant access to actionable tank storage industry data