• Natural Gas News

    Eni Could Supply LNG to Pakistan

    old

Summary

Eni could supply LNG to Pakistan as Islamabad and Rome are expected to sign a government-to-government deal for supply of gas, according to Pakistani newspaper Express Tribune.

by: Shardul

Posted in:

Asia/Oceania

Eni Could Supply LNG to Pakistan

Eni could supply LNG to Pakistan as Islamabad and Rome are expected to sign a government-to-government deal for supply of gas, according to Pakistani newspaper Express Tribune.

The Italian energy major has said it could provide 3 million tonne of LNG per year. The Pakistan government has sent a draft of the government-to-government agreement it signed with Qatar to Italy for examination, the newspaper reported citing sources.

Pakistan is currently buying LNG from Qatar under the long term deal signed earlier this year. Also, it is buying the fuel from Gunvor that has received a contract for providing 60 ships. Total supply stands at 300 million cubic feet per day (mmcfd) from Qatar and 100 mmcfd from Gunvor. The price for both supply sources was 13.37% of the Brent oil rate.

Second LNG terminal

In order to further smoothen imports of LNG Pakistan has awarded contract to Pakistan GasPort Limited to build country’s second LNG terminal. The information was revealed in a tender evaluation report made public by government-owned Pakistan LNG Terminals Limited on Friday.

The terminal will come up at Port Qasim which already has the first import terminal. Pakistan’s only operational LNG terminal at Port Qasim has so far regasified and pumped over 77 billion cubic feet of gas (bcf) into the national gas distribution network. The terminal became operational about a year ago. Utilising Excelerate's floating storage and regasification vessel (FSRU), the Exquisite, the facility has the capacity to deliver up to 690 million ft3/d of natural gas directly to Sui Southern Gas Company's natural gas pipeline system. Most of the gas has been supplied to gas-based power plants that were either sitting idle due to non-availability of gas or burning expensive form of fuel to produce expensive electricity.

The second terminal is expected to be complete in 11 months.

Pakistan has been facing severe gas shortage since last few years. To augment energy supplies, Pakistan has stepped up effort to attract foreign investment, especially in the oil, gas and LNG sectors.