First Qatar LNG shipment reaches Karachi port

[farhan_9909]

KARACHI: A shipment of 147,000 cubic feet of Liquefied Natural Gas (LNG) from Qatar reached Karachi today in a Floating Storage Regasification Unit (FSRU).

The FSRU, after going through clearance, will dock at Engro Corporation's Elengy Terminal Pakistan Limited (ETPL) where the cargo will undergo 'regasification' before being injected into the Sui Southern Gas Company Ltd (SSGCL) network.

The SSGCL is then required to transfer it to the Sui Northern Gas Pipelines Ltd (SNGPL) at the Zamzama-Sawan gas establishment.

The LNG will initially be provided to four Independent Power Producers (IPPs) in Punjab, including Kot Addu Power Company (Kapco).

In the second phase of the operation, fuel will be used for Compressed Natural Gas (CNG) and in the third, it will be supplied to the fertiliser sector.

Subsequent shipments of LNG will be transported in Qatargas' Q-Flex carrier.

Confusion persists over the liquefied natural gas (LNG) deal with Qatar as the government has not yet disclosed the per MMBTU price of gas.

Under the $22 billion reported deal, Qatar agreed to supply 500 million cubic feet of LNG per day for 15 years. However, there was no official word on LNG deal and details about the rate of the purchase and sale price.

Read more: Confusion over price of LNG from Qatar

Concerns over the specifications of the terminal were raised by Qatargas with the Port Qasim Authorities (PQA) at a meeting on March 9. Qatargas officials said a series of steps were required to be completed by PQA “as soon as possible in order for the terminal to be accessible”.

The terminal required additional dredging in order to facilitate the Q-Flex carrier. The ongoing modifications are not going to hamper the transfer of the first shipment of LNG to the Elengy terminal.

Modifications at the terminal are underway and are expected to be complete within the next few days.

First Qatar LNG shipment reaches Karachi port - Pakistan - DAWN.COM

 

[Meejee]

This amounts to 8 $/MMBTU

 

[Meejee]

And based on current low pricing scenario, the cost of BTU's of Fuel Oil costs around 9 $/MMBTU

 

[farhan_9909]

i have followed this LNG deal since 2011.

Good to know that the deal is reached and pakistan now will have a supply of LNG as a cheaper source of energy.

 

[Oracle]

In the second phase of the operation, fuel will be used for Compressed Natural Gas (CNG) and in the third, it will be supplied to the fertiliser sector.

When they will start 2nd phase ? its been 3 years i havent used CNG in my car.

 

[Muhammad Omar]

hain yeh to keh rhy thy k Karachi port me ship ni aa skta hai neeche rait hai ship phas jai ga..... Etc etc

 

[Kabira]

Abbasi said price will be cheaper then anywhere in Asia. Lets see how cheap it is because they are not disclosing it yet.

This amounts to 8 $/MMBTU

This is cheaper then anywhere Asia?

 

[nomi007]

this will be the biggest scandal in the history of pakistan

 

[Wolfhound]

KARACHI: A shipment of 147,000 cubic feet of Liquefied Natural Gas (LNG) from Qatar reached Karachi today in a Floating Storage Regasification Unit (FSRU).

The FSRU, after going through clearance, will dock at Engro Corporation's Elengy Terminal Pakistan Limited (ETPL) where the cargo will undergo 'regasification' before being injected into the Sui Southern Gas Company Ltd (SSGCL) network.

The SSGCL is then required to transfer it to the Sui Northern Gas Pipelines Ltd (SNGPL) at the Zamzama-Sawan gas establishment.

The LNG will initially be provided to four Independent Power Producers (IPPs) in Punjab, including Kot Addu Power Company (Kapco).

In the second phase of the operation, fuel will be used for Compressed Natural Gas (CNG) and in the third, it will be supplied to the fertiliser sector.

Subsequent shipments of LNG will be transported in Qatargas' Q-Flex carrier.

Confusion persists over the liquefied natural gas (LNG) deal with Qatar as the government has not yet disclosed the per MMBTU price of gas.

Under the $22 billion reported deal, Qatar agreed to supply 500 million cubic feet of LNG per day for 15 years. However, there was no official word on LNG deal and details about the rate of the purchase and sale price.

Read more: Confusion over price of LNG from Qatar

Concerns over the specifications of the terminal were raised by Qatargas with the Port Qasim Authorities (PQA) at a meeting on March 9. Qatargas officials said a series of steps were required to be completed by PQA “as soon as possible in order for the terminal to be accessible”.

The terminal required additional dredging in order to facilitate the Q-Flex carrier. The ongoing modifications are not going to hamper the transfer of the first shipment of LNG to the Elengy terminal.

Modifications at the terminal are underway and are expected to be complete within the next few days.

First Qatar LNG shipment reaches Karachi port - Pakistan - DAWN.COM

You mean they have docked but not unloaded because of the upgradation?

 

[SBD-3]

hain yeh to keh rhy thy k Karachi port me ship ni aa skta hai neeche rait hai ship phas jai ga..... Etc etc

Not the fully loaded CNG container. But this is partially loaded one.

this will be the biggest scandal in the history of pakistan

Inqilabi wishes. I was listening to PTI lawmaker Ali Khan on LNG and that idiot was saying don't go for long term deal, buy cheap from spot market. I wish Asad Umar giving a lecture to party leadership on energy security and the rationale and benefits of long term contracts.

 

[Donatello]

Not the fully loaded CNG container. But this is partially loaded one.


Inqilabi wishes. I was listening to PTI lawmaker Ali Khan on LNG and that idiot was saying don't go for long term deal, buy cheap from spot market. I wish Asad Umar giving a lecture to party leadership on energy security and the rationale and benefits of long term contracts.

You could've signed a contract, but not for 15 years, that is too long......Pakistan should've asked for 5 years contract, negotiable at the end when previous contract terms were satisfied. Also, Pakistan is just going to import 500 MMCF of gas......the supply demand gap is 2 billion MMCF and growing....so Pakistan will need to purchase more in the future anyway. But Qatar wanted an assured supply of $ so they forced a 15 year contract.

 

[SBD-3]

You could've signed a contract, but not for 15 years, that is too long......Pakistan should've asked for 5 years contract, negotiable at the end when previous contract terms were satisfied. Also, Pakistan is just going to import 500 MMCF of gas......the supply demand gap is 2 billion MMCF and growing....so Pakistan will need to purchase more in the future anyway. But Qatar wanted an assured supply of $ so they forced a 15 year contract.

Standard long term contracts are for 25 years. Long term contracts are not fixed. The price of underlying is linked to a reference I.e oil or renegotiated after an interval. Plus to stop an unnecessary increase the price is capped. So ample protection is available to purchaser against upside and downside risks. That said, to expect that oil prices will fall significantly from here on will not be rational. There are more upside risks at this moment. Pakistan can use multiple resource to benefit from spot prices (like for CNG) but for strategic sectors like Industry and power generation fixing the costs hedges from further price volatility.

 

[Donatello]

Standard long term contracts are for 25 years. Long term contracts are not fixed. The price of underlying is linked to a reference I.e oil or renegotiated after an interval. Plus to stop an unnecessary increase the price is capped. So ample protection is available to purchaser against upside and downside risks. That said, to expect that oil prices will fall significantly from here on will not be rational. There are more upside risks at this moment. Pakistan can use multiple resource to benefit from spot prices (like for CNG) but for strategic sectors like Industry and power generation fixing the costs hedges from further price volatility.

It doesn't, but what if for some reason Pakistan is unable to make payments on time? That screws up the entire contract chain....also known as indemnity. But i hope that doesn't happen....and i am sure the price quote is expensive than domestic production...but we need Gas.....better to have slightly expensive one and get your economy rolling than not have it.

 

[SBD-3]

It doesn't, but what if for some reason Pakistan is unable to make payments on time? That screws up the entire contract chain....also known as indemnity. But i hope that doesn't happen....and i am sure the price quote is expensive than domestic production...but we need Gas.....better to have slightly expensive one and get your economy rolling than not have it.

Domestic production is cheaper but the gas produced in Sindh is only available to other provinces given Sindh's own demands are met. The LNG going to the power houses of Punjab means that Industries and users of Punjab will be using and paying for this LNG. Seeing this now Sindh govt has rushed to ECC to allow exploration of Low thermal gas deposits rather than importing LNG but they have not included the normal natural gas in their proposal. The access to cheaper resources has been restricted by 18th amendment but then again Punjab has been facing gas shortage amid other three provinces being net producers. So expensive or cheap the prime concern in Punjab at the moment is not the price but the availability

 

[Danish saleem]

Good Work keep it up!

this will be the biggest scandal in the history of pakistan

keep watching Mubasir Luqman!