US FSRU owner Excelerate Energy has signed a memorandum of understanding with a unit of Pakistan’s Engro to expand its LNG operations in the country.
Excelerate and Engro are already partners in Pakistan’s first LNG import terminal in Port Qasim.
The 150,900-cbm FSRU Exquisite started serving Engro Elengy Terminal, a joint venture of Engro and Vopak, back in 2015.
The unit currently fulfills as much as 15 percent of Pakistan’s domestic daily natural gas requirements, according to Excelerate. It has a peak regasification rate of 690 million cubic feet per day.
Now Excelerate and Engro plan to expand the cooperation to the downstream sector.
The US firm signed the deal Engro Eximp FZE. Under the memorandum, both partners would jointly evaluate the possibility of establishing a regasified LNG (RLNG) marketing business with maximum participation from the Pakistan’s private sector, Engro said in a statement.
Moreover, this initiative has the potential to increase private company participation in Pakistan’s LNG sector and enhance Pakistan’s energy security by opening up new RLNG supply avenues for businesses and consumers, it said.
This move comes at a point when the need for energy security has become a critical issue globally, and particularly for Pakistan, against the backdrop of current geopolitical dynamics, the statement said.
Pakistan has been struggling to secure much-needed LNG supplies to fuel its power plants due to very high spot LNG prices.
“As a pioneer in Pakistan’s LNG sector, we understand the importance of enhancing energy security; an imperative for Pakistan to ensure economic growth while providing consumers access to adequate, reliable, and affordable supplies of energy,” Ghias Khan, Engro’s president and CEO said.
“This agreement builds on the momentum we have established by extending our reach downstream of our existing terminal to key regasified LNG markets in Pakistan,” Steven Kobos, president and CEO of Excelerate said.