Pakistan has taken another step towards becoming a key buyer of liquefied natural gas (LNG) after signing a deal to purchase a floating storage and regasification unit (FSRU) unit for its second import terminal.
Global maritime organisation BW Group has signed an agreement with Pakistan GasPort Limited (PGPL) to build the new FSRU as well as securing a 15-year contract to provide LNG regasification services to the Port Qasim terminal.
BW’s FSRU will be capable of storing in excess of 170,000m3 of LNG and will feature a peak regasification capacity of 750 million standard cubic feet of gas per day (mmscfd). It is currently under construction at Samsung Heavy Industries (SHI) in Korea and is due to be delivered at the end of this year.
Yngvil Åsheim, Managing Director of BW LNG, commented, “BW is a leading player in the LNG sector, and we will leverage on our many years of experience to support Pakistan as they build their second LNG terminal.”
Iqbal Z. Ahmed, Chairman of PGPL, added, “We are delighted to be working with BW on this vitally important infrastructure project, which is the result of policies aimed at promoting investment and the renewed global faith in our country’s economy.”
“This landmark project will reduce Pakistan’s gas deficit by 30% and save some $1.5bn in annual foreign-exchange savings.”
The South Asian country is one of the key emerging buyers in the LNG market today, with imports commencing upon completion of its first FSRU in March 2015 helping to drive demand from an upsurge in new projects. Once operational in mid-2017, the new import terminal in Karachi will be able to receive 600 million cubic feet of natural gas per day.
According to reports, Pakistan shipped a total of 1.02 million tonnes of LNG in 2015 and has already imported 1.78 million tonnes in the first seven months of this year.