Investment in new LNG terminals at risk

Some government high-ups are allegedly exercising their influence to clear the way for a liquefied natural gas (LNG) terminal to enhance its capacity, a move that may spark some controversy. Engro Elengy Terminal Private Limited (EETPL) is making efforts to replace its existing Floating Storage and Re-gasification Unit (FSRU), which handles LNG imports, with a bigger one to enhance its handling capacity to 900 million cubic feet per day (mmcfd). At present, EETPL’s terminal has LNG handling capacity of 690 mmcfd, of which the government has been allocated 600 mmcfd. The terminal is operating at full capacity due to LNG imports from Qatar under a long-term contract. The previous government had put the onus of dealing with the EETPL’s demand for a bigger FSRU on Sui Southern Gas Company (SSGC) – a public utility. However, SSGC did not back the proposal. Earlier, SSGC officials have faced an investigation and the grant of permission to the terminal for enhancing its capacity may cause more trouble to the gas utility, sources said. Besides EETPL’s terminal, Pakistan has another such facility being run by Pakistan GasPort Consortium (PGPC). However, it is receiving only around 200 mmcfd of LNG, or two cargoes a month, due to the failure of Pakistan LNG Limited (PLL) to book more cargoes. On the PGPC terminal, the government has been allocated six LNG cargoes in a month.