ISLAMABAD: Engro Elengy Terminal Limited (EETL) in collaboration with Shell and Fatima Group plans to construct another terminal at Port Qasim with a capacity to re-gasify up to 600 mmscfd.
This was announced at a briefing at the terminal by the CEO of EETL Jahangir Piracha. He was briefing the journalists on celebration of an upcoming milestone of the existing terminal, which is set to receive its 100th LNG tanker. This was an unthinkable scenario just a few years ago as despite the LNG policy being enacted in 2006 there had been no practical move to develop the LNG ecosystem.
This changed with the launch of the 100% self-financed Engro Elengy Terminal in 2015. Following successful operation of over two-and-half years, Pakistan’s first and the only LNG import infrastructure has been a virtual natural gas lifeline for the country. With capacity to inject 600 mmscfd Re-gasified Liquefied Natural Gas (RLNG) in the system, Engro terminal emerges as the biggest gas source in Pakistan. The terminal has already handled 6.1 Million Tons of LNG since commissioning through 100 shipments, thereby bridging national natural gas deficit by 20-25 percent in the process.
The efficient operation of the terminal is key to accelerating national energy independence and economic revival. The terminal is providing round-the-clock supply of natural gas at a utilization rate of 100 percent for the Floating Storage and Regasification Unit (FSRU). This achievement makes it the only FSRU in the world that is operating at such high re-gas rates. With supply of RLNG, Pakistan is saving about USD 1.7 Billion Dollars each year due to fuel arbitrage savings between Diesel and LNG alone. Additionally, Engro is one of just fifteen companies in the world, which is operating such an advanced terminal Storage and regasification technology that enables such efficiencies.
The guaranteeing of gas has had profound economic impact nationally. Over 2,200MW power generation capacity has been brought online or switched from more expensive liquid fuels. RLNG also energized close to a dozen projects, generating billions of dollar economic activity in the country. More than 750 CNG stations started operating in Punjab for the first time with RLNG supplies, the first steps to an estimated $4.5 Billion industry. Revival of fertilizer industry is also made possible with substantial increase in production. This contributed significant savings to national exchequer and had direct contribution to GDP. The running of fertilizer plant at full capacity provides relief to farmers in terms of cheap and easily available urea fertilizer. It also brightens prospects of export of urea fertilizer in order to earn precious foreign exchange. Historically unavailability of gas to fertilizer plants has resulted in outflow of valuable foreign exchange as imports increase to meet demand.
Published in Daily Times, August 5th 2017.