Exxon Mobil one of the world’s largest Oil and Gas Company is partnering Pakistan’s group of businesses to work on a proposal to build the country’s third import terminal for Liquefied Natural Gas (LNG), the minister for maritime affairs, Hasil Bizenjo said in a statement.
Pakistani Consortium Energas is collaborating with Exxon Mobil to develop the third import terminal according to the minister; however, Exxon spokesperson in Singapore wasn’t immediately available for the comment.
The presentation was made by the companies to Pakistan’s Oil and Gas regulators on Thursday; a copy of the presentation was obtained by Bloomberg, the group is planning to start building the offshore terminal at Port Qasim, Karachi in May with $150 million of investment, the proposal is still pending for government approval.
Exxon Mobil and Qatar would be the suppliers for this terminal; the terminal is scheduled to be completed in 2019 according to the presentation. With growing energy needs Pakistan is becoming one of the largest users of LNG in emerging markets, a country with a population of 200 million and the economy growing at more than 5 percent annually has the potential to digest more, said Bloomberg New Energy Finance.
Pakistan’s domestic gas production is not increasing for the last decade despite growing demand. However, the additional terminal would help meet the country’s energy demands, the new terminal will have the capacity of 750 million cubic feet per day gas, in one year the terminal was able to transport 5.6 million tons of LNG. The presentation also says that Exxon and Energas already have consumers for 300 million cubic feet gas per day including power plants.
The Pakistani consortium Energas consists of Sapphire Group and Yunus Brothers Group the owner of Lucky Cement Ltd. The businesses are keen to secure long-term uninterrupted gas supply to the country on preferential terms.