Port Qasim Authority Issues LoI to Energas for LNG terminal
Port Qasim Authority has issued a conditional Letter of Intent (LoI) to Energas Terminal (Private) Limited for the construction of a Liquified Natural Gas (LNG). The Build-Operate-Transfer (BoT) program has been given an initial LoI on the basis of satisfied fulfillment of Quantitative Risk Assessment (QRA). The final LoI would be issued upon the completion of technical and financial proposals. These proposal (technical and financial) will be assessed on the basis of project guidelines by Port-Qasim-Authority appointed consultants. Port-Qasim-Authority has issued an order for Energas to submit a performance bond of $10 million before signing the Implementation Agreement. This bond will be revoked incase the company fails to implement the project within two years from the date of Implementation Agreement.
Energas Terminal (Pvt) Limited is a consortium that consists of Younus Brothers, Sapphire & Halmore and US energy giant ExxonMobil. This terminal will have a tolling capacity of 750mmcfd to 1,000mmcfd (million cubic feet per day). Port-Qasim-Authority has demanded a royalty of $1.9 per ton of gas. This royalty will automatically increase every five years. Pakistan is expected to massively increase its imports of LNG as the country shifts its power fuel mix away from RFO and towards LNG.