US energy giant ExxonMobil to help build LNG terminal in Pakistan
The terminal will be built in Karachi as a joint-venture with Pakistan.
US energy giant ExxonMobil plans to build its third-largest LNG terminal as it secured a liquefied natural gas (LNG) supply contract from private-sector consumers. The terminal will be built in Karachi as a joint-venture with Pakistan.
ExxonMobil drilled an offshore well to search for hydrocarbon reserves in the Arabian Sea a while ago in collaboration with Pakistan’s exploration and production companies. But the effort did not prove to be futile.
Now, in their new project, the energy giant is investing to set up an LNG terminal in Pakistan. ExxonMobil, which is globally the largest publicly traded oil and gas firm, had finalized an agreement with UGDC (Universal Gas Distribution Company) for LNG supply. UGDC is an association of CNG station owners and operators.
The deal was finalized after PTI’s recent decision:
Pakistan Tehreek-e-Insaf (PTI) government has recently permitted the private sector to make the best use of static existing LNG terminals and pipelines of public gas utilities. This was done to challenge the monopoly of the public sector, as private companies are believed to provide LNG at far cheaper rates.
Currently, only two LNG terminals having a total capacity of 1.3 billion cubic feet per day (bcfd) are operational.
”PQA’s final date of acceptance for the LOI was October 25. Energas, a consortium led by Lucky Cement and Sapphire – is likely to win the contract.”
(Source: Express Tribune)
Energas has been previously working with ExxonMobil as well in Pakistan. It is a buyers’ consortium with LNG demand from IPPs (independent power producers), cement, textile, and automobile manufacturing plants.
The said consortium also includes Halmore, planning to build the terminal in collaboration with ExxonMobil. The company that will win the bid will have to pay a fee of $10 million. The terminal needs to be built within 24 months.
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