China’s CNCEC to build Pakistan LNG terminal

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.

- Advertisements -

Most Popular

Golden Pass LNG to speed up pipeline construction

QatarEnergy and ExxonMobil are seeking approval from US energy regulators to increase the peak workforce to speed up the...

US FERC to decide on Venture Global’s CP2 LNG project

The US FERC is set to decide next week on Venture Global LNG's proposed CP2 LNG project in Louisiana. According...

Singapore LNG bunkering volumes hit new record

Singapore’s liquefied natural gas (LNG) bunkering sales reached a new record in May, according to Singapore’s Maritime and Port...

More News Like This

Gunvor, Pakistan settle LNG supply dispute

Geneva-based energy trader Gunvor has resolved a dispute with state-owned Pakistan LNG over issues related to contracted LNG supplies. "Gunvor...

OQ Trading submits lowest bid in Pakistan LNG tender

Oman’s state-owned firm OQ Trading has submitted the lowest bid in a tender to supply Pakistan with one spot...

Pakistan launches tender for one spot LNG cargo

State-owned Pakistan LNG has released a tender inviting firms to submit bids for one spot LNG shipment for delivery...

Trafigura, Vitol offer spot LNG cargoes to Pakistan

State-owned Pakistan LNG has received offers for spot liquefied natural gas shipments from traders Trafigura and Vitol following a...