KARACHI: Fatima Group, Shell and Engro have entered into a joint cooperation agreement to cooperate for the development of second Liquefied Natural Gas (LNG) Receiving and Re gasification Terminal at Port Qasim, Karachi, it is learnt.Recently, Pakistan has signed a deal to purchase a Floating Storage and Re gasification Unit (FSRU) for its second import terminal. A FSRU is the vital component required while transiting and transferring LNG through the oceanic channels and it can be termed as a special type of ship which is used for LNG transfer.Under the agreement, Singapore’s BW Group would deliver the FSRU to Pakistan Gas Port Limited (PGPL) in the fourth quarter this year, as well as providing the terminal at Port Qasim with LNG regasification services in a 15-year agreement.In this regard, three conglomerates have signed a deal to cooperate for the development of second LNG terminal which 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 while first gas is expected to be commenced by first quarter of 2018. ‘Fatima, Engro and Shell have formed the right mix for development, securing all the aspects critical for project realization and the project to be wholly funded through equity, leveraging strong balance sheets of parties, thus eliminating the need for project financing, usually a major reason for delays in asset development projects’, an official privy to the development, said.He said all three parties have already commenced Pre- Final Investment Decision (FID) development activities, including terminal studies and preparation for detailed engineering. “Project Development Plan already in-place and progress is regularly monitored by Steering Committees for fast track progress’, added the official. The Project will be located opposite to Mazhar Point at Port Qasim, across existing Engro Elengy Terminal Limited (EETL) and based on timeline & execution considerations, project will be FSRU based.As far as pre-development activities, project feasibility study has been completed and also the assessment for technology selection been completed.Environmental and Social Impact Assessment (ESIA) and quantitative risk assessment (QRA) and other studies are on fast track. The terminal will reduce Pakistan’s gas deficit by 30pc and ensure fuel for 3,600 megawatts of new power generation plants being constructed. 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 where Engro is receiving $0.6601 per mmbtu as the levelised (service) charge for handling a capacity of 400mmcfd. Engro’s terminal has so far re-gasified and pumped over 77 billion cubic feet of gas into the national gas distribution network by converting approximately 1.7 million tons of imported LNG. Pakistan is currently receiving LNG supplies from two sources – Qatar and Gunvor. Every month three ships arrive from Qatar carrying an average of 300mmcfd, and one ship is sent by Gunvor bringing an average of 100mmcfd. They are delivering LNG at a rate of 13.37% of Brent crude price.