BEIJING: The Fourth Construction Co. Ltd (FCC) of China National Chemical Engineering Group Corporation (CNCEC) has signed an EPCF contract with with Daewoo Gas to set up a new LNG terminal in Pakistan.
With a nameplate capacity of 2.5 million tons per annum (mtpa) of LNG, this project will consist of the ports, storage tanks, a distribution center and regas trains in the long run.
The terminal will possibly be operated in the coast of Arabian Sea, south of Pakistan, according to Shahid Karim, CEO of Daewoo Gas. “This terminal is for liquid sales with adoption of Virtual Pipeline System Technique,” said Zhou Hong, General Manager of CNCEC-FCC.
Addressing the virtual signing ceremony, Karim said, “We hope that with the commencement of this project Daewoo Gas will not only help meet the energy needs of Pakistan, but also contribute towards upgrading of natural gas industry in the country with its innovative technology.”
Upon completion, this terminal will handle 10,000 metric tons of LNG per day at its peak, which will improve Pakistan’s energy supply, according to Daewoo Gas.
Zhou said “Under the framework of the China-Pakistan Economic Corridor (CPEC), this project will not only effectively fill Pakistan’s energy gap, but also meet its demand for clean energy, energy conservation and emission reduction.”
“It is worth noting that the project will provide a comprehensive clean energy solution with higher efficiency, lower emissions and prices for both goods transportation and industrial power generation in Pakistan,” Zhou added.
In addition, Daewoo Gas LNG terminal project will create estimated 2,000 to 4,000 job opportunities for locals. These include posts for management, operation, maintenance support, marketing, logistics and transportation.
Zhou said, “This large project represents the ideals of CPEC industrial cooperation and technology transfer between China and Pakistan, and will further strengthen the traditional China-Pakistan friendship.”
It is learnt that CNCEC has established an office at Karachi and FCC is planning to set up a branch in Pakistan in the future.
Days earlier had Daewoo Gas Chief Executive Officer Shahid Karim remarked, the transition to LNG from diesel and oil is the correct way forward for Pakistan in terms of making the shift to renewable.
He was speaking during a ceremony held to mark the signing of a Master EPCF (engineering, procurement, construction and finance) contract between Daewoo Gas and China National Chemical Engineering Company (CNCEC).
“We look forward to the continued cooperation of the government of Pakistan to help us achieve the goal of delivering LNG to Pakistan’s industrial and domestic consumers at the earliest,” he said. Under the contract, CNCEC would design, construct and finance an offshore LNG terminal with topside equipment to enable LNG filling into ISO containers (intermodal containers) for use in Pakistan.
The specialised LNG containers would be moved by trucks all over Pakistan, where LNG would be re-gasified at client sites, according to a statement.
“At its peak, Daewoo Gas’ terminal will handle 10,000 tons of LNG per day, improve Pakistan’s energy supply, create thousands of jobs nationally and reduce carbon emissions,” the statement added.
The total foreign investment in this project including the terminal, facilities, LNG logistics and supply infrastructure was estimated to be around $300 million.
“The project is based on the innovative design of transporting LNG on trucks and bowsers loaded with ISO tanks rather than through the pipeline system.”
“This technology is referred to as ‘Virtual LNG’ (VLNG) pipeline and is common in China,” the statement said.
Detailing about the plan, Karim mentioned that the vision was to operationalise the terminal within a year – before summer 2023 – at Pakistan’s LNG zone in the Arabian Sea.
He voiced hope that the project would not only help meet the energy needs of Pakistan, but would also contribute towards upgrading the natural gas industry in the country with innovative technology.
The project would develop a gas supply-chain in parallel to the fixed pipeline supply network “at no risk or cost to the government of Pakistan”, he emphasised.
