Singapore-based Trafigura Group has announced its intentions to develop a second liquefied natural gas (LNG) import terminal at Port Qasim in Pakistan.
The commodities trading company made the announcement during the inauguration of a new LNG floating storage and regasification import terminal at the port located in Karachi.
A consortium featuring Pakistan GasPort (PGPL), Trafigura, BW Group and Fauji Oil Terminal and Distribution Company has established the terminal, which is expected to get its first cargo of LNG this month.
The first LNG floating storage and regasification import terminal is considered to be an important step in meeting the country’s increasing demand for imported LNG. It is expected to more than double the current LNG regasification capacity of Pakistan.
The newly opened LNG terminal is claimed to have a daily capacity to supply 90 million cubic feet of gas to private buyers in the country.
Trafigura, in a statement, said: “This landmark project, in which Trafigura is delighted to be a minority investor, is a vital step in meeting Pakistan’s growing demand for imported LNG, a cost effective and relatively clean fuel for power generation and an essential complement to diminishing supplies of domestically-produced gas.”
For the newly proposed LNG terminal, Trafigura will partner with PGPL for developing a new merchant floating storage and regasification unit (FSRU) project through a joint venture.
The partners will independently supply gas to private sector end-users without any direct involvement of the government.
According to Trafigura, the project will feature a new jetty, berth and a second FSRU. It is expected to benefit from cost synergies with the existing facility.
The new project would offer the potential to turbo-charge LNG import growth and rapidly scale up industrial use of the commodity in Pakistan.
Trafigura says that even after the second such terminal reaches full capacity, Pakistan will still fall short of 19 million tonnes of LNG per annum.