Shell, Exxon to Build LNG Import Terminals in Pakistan

Shell, Exxon to Build LNG Import Terminals in PakistanShell, Exxon to Build LNG Import Terminals in Pakistan

Shell and Exxon are among the companies picked by the Pakistani government to build five LNG import terminals as part of efforts to boost natural gas imports to deal with supply shortages, Oil Price reported.
The terminals could be operational in two to three years, the country’s Oil and Power Minister Omar Ayub Khan said.
With a fast-rising population, Pakistan has been plagued with power outages largely resulting from a shortage of fuel necessary to keep its power stations going. 
Though there is some local production, in financial year 2017-18, demand exceeded supply by about 85 million cubic meters daily. Imports of gas and LNG are already on the rise but not fast enough to ensure no more blackouts.
To remedy matters, the government has picked five consortia to build additional terminals. The consortia include, besides the two majors, also Mitsubishi Corp, Energas, Trafigura, and Gunvor.
The consortia must submit their plans for the terminals for government approval by November 5.
Pakistan currently has LNG import capacity of 34 million cubic meters per day in two terminals, with plans to add another with a capacity of 17 billion cubic meters daily in 2020. 
Besides imports, however, Pakistan is also pursuing higher local production. The country is eager to open up its gas deposits to foreign energy companies.


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