ISLAMABAD: Energas LNG Terminal plans to start the country’s largest liquefied natural gas import terminal in 2021 to help meet soaring demand once it gets the green light to build the project, Bloomberg has reported.
“A consortium of large domestic users, Energas aims to begin construction of the $140-$160 million facility next year,” Chief Executive Officer Anser Ahmed Khan said in an interview.
The project is being supported by Exxon Mobil Corp.
Energas and Exxon first proposed the terminal to Pakistan’s previous government in 2017, at that time aiming to complete it by this year. The venture is one of two that submitted bids in October for regulators’ permission to build terminals and tap demand that is expected to outgrow import capacity.
“There is a lot of demand in Pakistan and it will just grow,” said Khan, who was vice president for LNG at EDF Energy Ltd in London before taking up his current role in 2017. “The market is price sensitive so we need to play that card right.”
The Energas proposal still faces several hurdles, including obtaining regulatory approval. It also hasn’t signed off-take deals for much of its capacity and hasn’t made a final investment decision. It has received bids for a floating storage and regasification unit that will be connected to Port Qasim terminal in Karachi, and will award the contract by March, Khan said.
Tabeer Energy, the Mitsubishi Corp unit that also applied to build an LNG terminal, couldn’t be reached for comment.
The two ventures are vying to tap into what’s expected to be one of the world’s bright spots for LNG imports, with purchases set to quadruple by 2040 amid stagnating domestic production and robust demand, BloombergNEF forecast last week in a report.
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