Engro Elengy Terminal Handles 160 LNG Cargoes since inception
Pakistan has imported a historic 10 million tons of liquefied natural gas (LNG) through the country’s first LNG terminal, Engro Elengy which is located at Port Qasim. Country’s pioneer LNG terminal operated by Engro, has handled 160 LNG cargo ships in last three years.
According to a Government official, Pakistan has saved approximately USD 03 Billion over a period of 3 years by importing LNG, which is cheaper than furnace and diesel oil. Pakistan has a gas deficit of over 2.5 billion cubic feet, and current LNG import is reducing this deficit by 25%.
Sources said that country’s first LNG terminal, which was completed on a fast-track basis within 335 days currently regasifies approximately 600-630 mmscfd of gas and pumps it into the gas distribution network.
Sources informed that due to the gas shortage in the country Government was unable to provide gas to different sectors of economy including Power Plants, CNG Stations and Fertilizer Plants resulting in huge production as well as foreign exchange losses.
Government was paying Capacity Charge (idle Charges) to power plants which increased the price of electricity for the consumers. Saif Power, Halmore, Sapphire and Orient Power Plants were operating at less than 50% service factor on Diesel which is very expensive fuel as compared to LNG which is much cheaper as compared to Diesel.
Non-availability of gas to fertilizer plants had also resulted in outflow of valuable foreign exchange as a result of imports to meet demand. More than 200 CNG stations across Punjab have also been getting gas at better frequency which has facilitated the transport industry in the country along with the general public.
Sources claimed that LNG as a fuel for power generation over Furnace Oil, is more efficient in power generation (60%+ efficiency on RLNG vs ~40% on alternate fuel), has much lower O&M costs and thus is friendlier on the economy in the form of much lower electricity tariff for the masses.
Talking about the recent domestic prices for different fuels sources claimed that LPG costs $23mmbtu, HSFO $17.4/mmbtu, HSD $24.3/mmbtu, MoGas $23.7/mmbtu while RLNG costs just $10.8/mmbtu, which clearly shows that LNG is a cheaper option compared to most fuels.
Sources said that LNG imports have paved the way for huge investment in new LNG based power production in the country. Three new RLNG based power plants have been setup in Haveli Bahadur Shah, Bhikki and Balloki with total capacity of 3,600MW and these plants are Pakistan’s most efficient power generation units with approximate efficiency of up to 62%.
He further remarked that setting up the country’s first LNG terminal and LNG import infrastructure has paved the way for more LNG terminals in the country. A second terminal is also functional at Port Qasim. Pakistan needs three to four more LNG import terminals to address the ongoing energy shortage head on. The building of Engro’s LNG terminal was the trigger for a dramatic growth story for Pakistan. From nowhere, we could be among the Top 5 LNG import markets in just five years.
LNG is the cleanest burning hydrocarbon and the greenest fossil fuel. Compared to furnace oil, it is more efficient in power generation (60% efficiency on RLNG vs 45% on alternate fuel), has much lower O&M costs and, thus, contributes most to lower energy prices to the end customer.
