A unit of China National Chemical Engineering Group Corporation (CNCEC) has signed a deal with Daewoo Gas, backed by Hong Kong-based Asiapak Investments, to build an LNG import terminal in Pakistan.
The Fourth Construction Company (FCC) of CNCEC penned an engineering, procurement, and construction (EPC) deal with Daewoo Gas during a virtual ceremony on April 21, according to a statement by CNCEC.
CNCEC said the facility would have a capacity of 2.5 mtpa while the total investment for the project would reach $350 million.
The Chinese firm said the project includes building LNG receiving stations and storage tanks, and onshore distribution centers.
It did not provide any additional information regarding the facility.
Virtual pipeline system
Several local media reports in Pakistan reported, citing a statement by Daewoo Gas, that the facility would handle 10,000 tons of LNG per day at its peak.
The reports said that the EPC deal also includes financing for the project.
Daewoo Gas is a joint venture of Asiapak Investments but also Chinese energy and technology companies, the reports said.
According to an approval issued by Pakistan’s Oil and Gas Authority or OGRA on January 21, 2021, Daewoo Gas aims to establish the LNG terminal at Gwadar Port to supply LNG via a virtual pipeline system, supplying LNG by trucks to its customers.
Also, LNG containers on trucks would allow transportation to remote sites where no pipelines are available, it said.
OGRA said that Daewoo Gas plans to install a floating storage unit and a land-based manifold unit as part of the project.
Pakistan currently imports LNG via two floating storage and regasification units (FSRUs) located in Port Qasim, Karachi.
State-owned Pakistan LNG recently issued several tenders inviting firms to submit bids for spot LNG shipments, as the country looks to secure much-needed supply to fuel its power plants.
