After 2 years and 5 months of operations, Prime Minister Shahid Khaqan Abbasi once again inaugurated the country’s first ever LNG terminal at Port Qasim, Karachi.
Engro LNG Terminal Pakistan started its commercial operations on 28 March, 2015. The plant was completed in a record 330 days.
Pakistan has imported a record 6.1 million tons of LNG through country’s first LNG terminal at Port Qasim.
Re-Gasified 300 Billion Cubic Feet
Engro’s LNG terminal has so far handled 100 LNG cargo ships at its LNG terminal and re-gasified approximately 300 billion cubic feet of gas into the gas distribution network of the country within 26 months. The LNG terminal has the capacity to re-gasify 600 mmscfd gas.
This terminal provides much needed energy relief to the country, because Pakistan has a gas deficit of over 2.5 billion cubic feet and current LNG imports have reduced this deficit by 20 to 25 percent.
Ever since the induction of LNG into country’s gas distribution network, the government has brought 2,200 MW of power generation online by switching to LNG from expensive liquid fuels.
Savings of $1.7 Billion
According to officials, Pakistan has so far saved approximately US$ 1.7 billion by importing liquefied natural gas (LNG) that was cheaper than furnace oil and diesel – major fuel sources used to run Pakistan’s power plants.
Internationally, over 240 MTPA of LNG is traded worldwide, out of which more than 170 MTPA is tied to Take or Pay Contracts worldwide. Even coal dominated economies like South Africa have switched to gas and are now developing a framework for importing LNG.
Solution For The Energy Crisis?
This infrastructural breakthrough has enabled the government to address the energy crisis through investment in new gas fired power plants for additional 3,600 MW power generation capacity. These power plants are under construction at Sheikhupura, Jhang and Kasur districts and will be Pakistan’s most efficient power generation units.
Additionally the government was making Take or Pay payments to five Independent Power Producers despite them operating at 0-50% of capacity.