IFC to invest in LNG terminal at Port Qasim
The International Finance Corporation released a summary of a proposed investment in the LNG terminal located at Port Qasim, near Karachi, Pakistan.
Total investment is valued at $27.5 million with $7.5 million in the form of equity for 20 percent shareholding and a further $20 million loan.
Following a public tendering process in 2013, Engro Elengy Terminal (Private) Limited (‘ETPL’) has signed a 15-year LNG Service Agreement with the Sui Southern Gas Company (“SSGC”) under the terms of which ETPL will be responsible for the design, construction and operation of a 3 MTPA LNG receiving, re-gasification and storage facility at Port Qasim, near Karachi. This terminal will be the first LNG import facility in Pakistan and will enable the country to start importing LNG, thus helping it meet some of the growing demand for natural gas, particularly in the power sector.
“The Project involves use of a Floating Storage and Regasification Unit (‘FSRU’) which will store the imported LNG and regasify it before transporting the gas via a pipeline to the existing SSGC gas network near Port Qasim. Development of the Project is expected to be completed by early 2015,” stands in the IFC summary.
Total Project cost is estimated to be around USD130 million to be funded via a combination of debt and equity financing.
Press Release, July 28, 2014