ExxonMobil, Total, Qatar Petroleum (QP), and Mitsubishi have joined Norway-based shipowner Hoegh LNG to form a consortium to advance Pakistan’s liquefied natural gas (LNG) import project.
According to Hoegh LNG, the five-company consortium will work in collaboration with local developer Global Energy Infrastructure Limited (GEIL)to develop the terminal, but no shareholdings were detailed.Hoegh LNG was the first to go on board the project, signing a contract with GEIL for the LNG import project in Port Qasim near Karachi, Pakistan on December 15.
The project will be the first private LNG import terminal in Pakistan, although it will be the third floating import terminal to be located in Port Qasim. It will include a floating storage and regasification unit (FSRU), a jetty, and a pipeline. The FSRU will have a minimum regasification capacity of 750million cubic feet per day when it enters service in 2018.
“Forming this consortium with Total, Mitsubishi, ExxonMobil and Hoegh LNG represents a significant milestone that complements Pakistan’s successful effort to meet the growing demand for clean-burning natural gas in this important market,” Saad Sherida Al-Kaabi, QP’s president and CEO said.
In July 2016, QP, Exxon and Total-owned subsidiary Qatargas-2 signed an agreement to supply 1.3 million metric tons per year to GEIL for Pakistan over 20 years, starting 2018, with provisions allowing the volume to be increased to 2.3 million metric tons per year.
As Pakistan’s LNG imports rise, focus is on building requisite infrastructure. Recently, Excelerate Energy said it will deliver its second FSRU to Pakistan following negotiations with a consortium comprising Engro, Fatima, and Shell. It is expected to be the country’s 4th such floating terminal.