Eni to Supply LNG to Pakistan LNG

State-owned importer Pakistan LNG has awarded a contract to Italian Eni to supply a cargo per month during the next 15 years, for a total of 180 cargoes, corresponding to 11mn metric tons of LNG.

A significant part of the LNG volume will be sourced from Indonesia, where the Eni-operated Jangkrik field will come on stream in the next couple of months, Eni said May 2. The LNG will be delivered to a new floating storage and regas unit moored in Port Qasim. The LNG quantities that Eni will supply every year correspond to 25% of Pakistan LNG imports in 2016.

Pakistan LNG has been mandated by the government to carry out the business of the importing, distributing, transporting and selling of natural gas, LNG, re-gasified LNG to meet the country’s gas requirements. 

Pakistan - bigger than some mature LNG markets

LNG is becoming an important part of Pakistan’s economy which is heavily dependent on gas. It imported 2.95mn mt of LNG in 2016, a year-on-year increase of 181%, according to the latest annual report of the International LNG Importers Group (GIIGNL); 72% of its 2016 imports came from Qatar.

Thus in only its second year as an importer, Pakistan in 2016 accounted for 1.1% of world LNG trade -- level with Thailand, and the US plus Puerto Rico, and just behind Chile's 1.2%. To keep pace with rising demand for LNG, Pakistan's government has fostered the development of new import terminals.

In addition to the existing Engro LNG terminal opened in March 2015 using an Excelerate vessel,  three new such FSRUs -- owned by BW Gas, Excelerate, and Hoegh LNG -- are to be deployed by various consortia in Pakistan in mid-2017, 2018 and 2018 respectively. A fifth may follow later.

Shardul Sharma