Chinese government in US$3 billion LNG project

Society Pakistan & World Affairs
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**Keep the flag flying high …

bring FDI and political/economical stability in Pak

Power hungry self centred lot will be wiped out from the political landscape soon !** …:k:

Chinese Government in US$3 billion LNG project

http://www.porttechnology.org/images/sized/images/uploads/news/shahid-afp-khaqan-abbasi-200x177.jpg

Shahid Khaqan Abbasi, petroleum and natural resources minister.

An LNG terminal at Gwadar, and a pipeline to Nawabshah, both in Pakistan, is being launched by the government of Nawaz Sharif with Chinese collaboration, in what will be a US$3 billion mega-project.

Pakistan’s ministry of petroleum and natural resources (MoPNR) has decided to build the LNG terminal and pipeline through a Government-to-Government (G2G) arrangement with China.

China has promised to provide US$35 billion relating to the economic corridor and energy-related projects, and this new project will also be funded through the same scheme.

Two Chinese companies have already shown interest in building the Gwadar LNG terminal and installing the US$1 billion pipeline. Another US$2 billion will be needed to construct the terminal with LNG handling and re-gasification facilities, as well as to erect extensive LNG storage tanks.

Shahid Khaqan Abbasi, petroleum and natural resources minister, said: “This will be the second LNG terminal as the first fast-track terminal is being constructed by Engro’s ETPL (Elengy Terminal Pakistan Limited) at Port Qasim, which is scheduled to be completed by March 31, 2015, but we are hoping that the terminal will be completed by December this year.”

The LNG terminal at Gwadar Port will have a handling capacity of 19.5 million m[SUP]3[/SUP] per day. In addition, large LNG storage depots at Gwadar will be constructed.

http://www.porttechnology.org/news/chinese_government_in_us3_billion_lng_project/#.U81Tt-OSyE0

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Re: Chinese government in US$3 billion LNG project

New $3 bn LNG project ready for Gwadar

Khalid MustafaMonday, July 21, 2014

**ISLAMABAD: Another fast-track three billion dollars mega project, an LNG terminal at Gwadar and a pipeline to Nawabshah, is being launched by the Nawaz Sharif government with Chinese collaboration.
**
In a major strategic move, the Ministry of Petroleum and Natural Resources (MoPNR) has decided to build the LNG terminal and pipeline through a Government-to-Government (G2G ) arrangement with China. Experts say this would mean that the project will not be advertised for open international bidding.

“We are running from pillar to post to get this mega LNG terminal-cum-pipeline included in the list of early harvest projects agreed with China and once it is included, it will take three to four years to get commissioned,” Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi told The News.

“We have already sensitised the prime minister about the proposed LNG project at Gwadar and hope to get this project in early harvest projects list.”China has promised to provide $35 billion in projects relating to the economic corridor and energy related projects and this new project will also be funded through the same scheme.

Two Chinese companies have already shown interest in building the LNG terminal at Gwadar and lay down the pipeline. The pipeline will require $1 billion and over $2 billion will be needed to construct the terminal with LNG handling and re-gasification facilities and to erect large LNG storages facilities.

“This will be the second LNG terminal as the first fast track terminal is being constructed by Engro’s ETPL (Elengy Terminal Pakistan Limited) at Port Qasim, which is scheduled to be completed by March 31, 2015 but we are hoping that the terminal will be completed by December this year,” the minister said.

Mentioning the LNG project at Gwadar, the minister said, whenever the US sanctions now imposed on Iran are lifted, this Nawabshah-Gwadar pipeline will be extended backwards from Gwadar to MP 250, a point at Pak-Iran border for the import of Iranian gas. Its capacity will be increased to one billion cubic feet of gas per day.

The Gwadar-Nawabshah pipeline will have the same specifications with diameter of 42 inches that is proposed for the Iran-Pakistan (IP) gas pipeline.According to officials, since Pakistan is unable to lay down the 781-kilometre-long pipeline from the Iran border to Nawabshah because of Pakistan’s inability to arrange foreign funding, it has been decided to lay down the pipeline from Gwadar to Nawabshah under the G2G arrangement with China that will transport at least 500 mmcfd after re-gasification of imported LNG.

To a question, the official said that LNG terminal to be constructed at the Gwadar Port will have handling capacity of 690 mmcfd and in addition, large LNG storage depots at Gwadar will also be constructed from where after re-gasification, gas will be transported to Nawabshah to be injected into the national gas network.

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Re: Chinese government in US$3 billion LNG project

Petrol, CNG, LPG aur aab LNG :naraz: is men bhi commission hon gai NS k chacho mamoo k :barbie:

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Re: Chinese government in US$3 billion LNG project

It would be prudent to mention the dollar return that is being guaranteed to the chinese/

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Re: Chinese government in US$3 billion LNG project

What has Nawaz sharif to do with petrol, cng and LPG?

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Re: Chinese government in US$3 billion LNG project

he has "corruption" to do. His family needs the money so they can invest in other countries you know

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Re: Chinese government in US$3 billion LNG project

I thought there is acute shortage of natural gas supply as number of CNG stations were closed in past. From where this gas be supplied to convert into LNG? NS and his team are maha chor as proved in the past, definitely there is huge commissions waiting for many in the pipe line, instead of LNG.

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Re: Chinese government in US$3 billion LNG project

shukaria wazahat ka :hat:

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Re: Chinese government in US$3 billion LNG project

Money lending: ADB set to approve $30m for Engro LNG project

By Shahbaz Rana
Published: September 6, 201

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The terminal – originally planned to be completed in November this year– is aimed at ensuring gas flows by coming winter season. PHOTO: STOCK IMAGE

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ISLAMABAD: **The Asian Development Bank is set to approve $30 million loan for the construction of Engro Fast track Liquefied Natural Gas regasification project.

The project is aimed at facilitating imports of up to 400 million cubic feet of gas per day (mmcfd) gas to bridge the soaring gap between demand and supply.

The loan will be given at London Interbank Offered Rates (Libor), according to the ADB. It will help Engro Elengy Terminal (ETPL), a fully owned subsidiary of Engro Corporation, to significantly meet the total financing requirements of the project, according to the ETPL official.
The project will involve the construction and operation of LNG terminal at Port Qasim including a 24 kilometre (km) branch pipeline to transport re-gasified LNG. About 21km of the pipeline is located within the Port Qasim Authority.

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The International Finance Corporation (IFC) of the World Bank is also expected to give about $30 million loan for the construction of the terminal. Out of the total cost, estimated over $100 million, ETPL will add $31 million as its equity, while the remaining 70% will be arranged from international and domestic financial institutions, according to the official.

Both IFC and ADB are expected to convert parts of their project financing into equity that will allow their representatives to sit on the Board of the company.

The terminal – originally planned to be completed in November this year – is aimed at ensuring gas flows by the upcoming winter season. However, the project is now delayed and will be completed in March, due to requisite approvals from government agencies.

The Petroleum and Natural Resources Minister Shahid Khaqan Abbasi had vowed to minimise gas load shedding in the winter season this year –a promise that is unlikely to be met as the authorities have yet to finalise a deal for its import.

The project involves the use of a floating storage and a regasification unit which will store imported LNG
and re-gasify it before transporting the gas through a 24km pipeline to the existing Sui Southern Gas Company network near Port Qasim.

Following a public tendering process in 2013, the ETPL has signed a 15-year LNG service agreement with the SSGC. The ETPL would provide the handling facility with toll charges and later increase imports to 400 mmcfd from 200 mmcfd which would be set in the beginning.

The company has already begun work on the project and has completed 15% dredging besides initiating the process to lay down the pipeline. As the international financial institutions are yet to approve the loans, the ETPL has arranged bridge financing to meet all the requirements.

The government has also initiated the process for issuing tenders for the import of gas. With the assistance of the United States Agency for International Development (USAID), the government has hired legal and commercial consultants aimed at facilitating in awarding the LNG import deal.

It has been simultaneously engaging with Qatar authorities, in addition to initiating process to issue a tender for the private parties. The country is seeking a government-to-government arrangement with Qatar but it has so far remained unable to strike a deal due to a high price demand, according to Ministry of Petroleum officials.

During the previous PPP government, Doha had offered to export LNG at a price equivalent to 14.7% of Brent crude oil rate when it was hovering around $110 per barrel in the international market. Later, Qatar pushed the price down to $17.437
per mmbtu, a 0.5% discount over the previous rate of $18.002 for the 20-year lifetime of the project.
*

Published in The Express Tribune, September 6[SUP]th[/SUP], 2014.*