ECC gives go-ahead for Gawadar-Nawabshah LNG Terminal

Society Pakistan & World Affairs
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**711 km Pipeline from Gwadar to Nawabshah and approx. $3 billion project.

Keep it up PML-N. Performance & only Performance with which they can outclass media sensationalism,dream selling, cult following and fake promises !**

ECC gives go-ahead for Gawadar-Nawabshah LNG terminal, pipeline project

By Shahbaz Rana
Published: October 2, 2014

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Finance Minister Ishaq Dar chairing the Economic Coordination Committee meeting on Thursday. PHOTO: PID

ISLAMABAD: In a strategic move, the government on Thursday decided to construct a Liquefied Natural Gas (LNG) terminal at Gawadar and a dual-purpose pipeline aimed at catering to the needs of LNG and imported natural gas from Iran as well.

The Economic Coordination Committee (ECC) of the Cabinet on Thursday gave the go-ahead for the Gawadar-Nawabshah LNG Terminal and Pipeline Project, according to a handout issued by Ministry of Finance.

The LNG terminal will be used for handling import of the resource and will be able handle up to **500 mmcfd of gas per day, **according to Ministry of Finance. Chaired by Finance Minister Ishaq Dar, the ECC authorised Interstate Gas Systems Limited (ISGS) to execute the implementation of the project.

Although, the government has not yet officially disclosed the price of the project, it is estimated that the project will cost about $3 billion.

This will be the second LNG terminal in Pakistan with the first being constructed by Engro’s ETPL (Elengy Terminal Pakistan Limited) at Port Qasim. It is scheduled to be completed by March 31, 2015. However, Pakistan has yet to finalise LNG procurement arrangements. It is considering both options for the Port Qasim Project.

Under the plan, a 711 kilometers long pipeline system will be laid down from Gawadar to Nawabshah. The diameter of the pipeline will be 42 inch –the specification that matches with requirements of Pakistan-Iran Gas pipeline. The I-P project has been facing delays due to sanctions imposed by the European Union and the United States against Iran.

**If the I-P project sees the daylight in future, the pipeline could be extended by 71 kilometer towards Iranian border for transportation of gas under I-P pipeline project, according to officials of Ministry of Petroleum and Natural Resources. **

Pakistani authorities have already informed the Iranian government that Pakistan is going to initiate the laying of **711-km of pipeline from Gwadar to Nawabshah **as a part of the LNG import project, they added.

Pakistan is hoping to avoid the possible penalties that Tehran might impose on Islamabad if it fails to fulfill the agreement of laying the I-P pipeline by the end of this year.

Pakistan has kept the options of competitive bidding open but in all likelihood the project is likely to be funded by **China **as part of its heavy investments in return of seeking access to Gawadar port, according to officials.

“The Finance Minister while approving the Project in principle advised the Ministry of Petroleum and Natural Resources to finalise the funding plan preferably on Government-to-Government basis or Build-Operate Transfer or Build-Operate and Own basis”, reads the handout.

According to preliminary unofficial estimates, 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.
**

Cotton Support Price**

The ECC also approved a Rs700 hike in support price for cotton, raising it to Rs3,000 per 40 kilogram cotton of grade 3 aimed at helping farmers from incurring further losses. The cotton is being sold at around Rs2,300 per mond even below the cost of production, according to Ministry of National Food Security officials.

The Trading Corporation of Pakistan (TCP) will procure one million bales of cotton at the approved support price. Finance minister said that the government was aware that the recent floods have badly affected a large part of the agriculture sector. “We are cognizant of difficulties faced by our farmers and we shall fully support them in this hour of need,” said Dar.

The ECC also approved proposal to determine local manufacturing status of machinery, equipment and other capital goods in the energy sector.

It was also decided that local manufacturers will be facilitated by providing them a level playing field. A working committee will be formed by the Federal Board of Revenue to review whether appropriate incentives can be offered to manufacturers to address their grievances and enhance their competitiveness for increased local and export sales.

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So once this pipeline is finished and functional. How easy it will be to register FIR without sit-in?

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Re: ECC gives go-ahead for Gawadar-Nawabshah LNG Terminal

btw the article didnt mentioned about the kickbacks
I would love to read that too

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Re: ECC gives go-ahead for Gawadar-Nawabshah LNG Terminal

**@ Dhoti Main Dhamaka **

**FIR by Canadian Mulla who will be soon in the same Parliament sitting with the same Yazeeds , Firons, Namroods & Shaddads … **:hehe:

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Re: ECC gives go-ahead for Gawadar-Nawabshah LNG Terminal

Not appropriate on public forum. Plz. PM me to give you exact share deatils of each concerned party
Regards

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For for killing 19 or so Pakistanis. Forget qadri.

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Re: ECC gives go-ahead for Gawadar-Nawabshah LNG Terminal

lulz](http://www.paklinks.com/gs/usertag.php?do=list&action=hash&hash=Lulz)

Thats the best you can say now

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Re: ECC gives go-ahead for Gawadar-Nawabshah LNG Terminal

What matters is not these meetings but when these projects are completed. Because if all these projects start that means:

  1. Jobs for people from all walks of life.
  2. People getting paid, so they can earn a living so they can feed their families and send their kids to school.
  3. In general some benefits for the common man if these projects get completed.

Once the project is completed then I will celebrate.

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Re: ECC gives go-ahead for Gawadar-Nawabshah LNG Terminal

**exact figure is 10.

whoever killed them and ordered firing must be brought to the court of law **

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**exact figure is 10.

whoever killed them and ordered firing must be brought to the court of law **
[/quote]

Just say you don’t know or care :slight_smile:
Amb khao pavan Je lashain tau Roz girti hain

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Re: ECC gives go-ahead for Gawadar-Nawabshah LNG Terminal

*^^ Jo Canadian Fasadi Mulla Tweet kr rha tha Canada mein beth kr ke Bahir niklo sb aurtai aur mard , aaj Yom-e-Shahdat hai jo Shaheed hoga Imam Hussain ke sath hoga .... apne jahil mureed aur blind followers ko mrwa dia takai Lasho ki Siasat kr ske *

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Once this pipeline is completed and functional. Will shahbaz shatif resign?

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Re: ECC gives go-ahead for Gawadar-Nawabshah LNG Terminal

China to invest in gas pipeline, LNG project

By The Newspaper’s Staff Reporter
Published about 12 hours ago

[TABLE=“class: media media–left one-whole palm–one-whole, width: 650”]

ISLAMABAD: Petroleum Minister Shahid Khaqan Abbasi meets Chinese delegation on Tuesday.—APP

**ISLAMABAD: Following a government decision for fast track construction of 710 km gas pipeline from Gawadar to Nawabshah early this month, a Chinese delegation is visiting Pakistan with interest to be part of the pipeline project and related Liquefied Natural Gas (LNG) infrastructure.
**

The delegation, led by Li Tong, Chief Executive Officer and Chairperson of Bank of China International, had a meeting on Tuesday with Petroleum Minister Shahid Khaqan Abbasi to look into investment opportunities arising out of proposed LNG imports and pipeline construction.

The delegation also included representatives of China Tianrui Group, Metallurgical Corporation of China, BOC International Holdings Limited, GCL-Poly Energy Holdings Limited and Shandong Hi-Speed Group Co.

The delegation will remain in Pakistan until end of this week and hold follow-up meetings and explore investment opportunities.
The delegation was given a presentation by the minister on overall energy sector, its ongoing projects and the upcoming projects.

The delegation was informed that facing severe energy shortages, the government had taken up improving energy supplies as its top-most priority and was pro actively striving to facilitate projects and investments.

He said the government had initiated a number of new projects in the energy sector, including import of LNG, installation of re-gasification terminals and laying down new pipelines for transportation of fuel from the southern ports to the upcountry.
He also appraised the delegation of opportunities available in oil and gas exploration and establishment of oil refineries in Pakistan’s coastal areas and benefits attached with it.

The visiting Chinese delegation appreciated Pakistan’s investment-friendly regime and showed keen interest to invest in the energy sector of Pakistan.
The delegates expressed their resolve to capitalise from the investment opportunities offered by the government, especially in the projects linked with the import of the LNG. The delegates also showed interest in the mineral sector of Pakistan.

**On Oct 2, the Economic Coordination Committee (ECC) of the cabinet had approved ‘fast track’ construction of 710 km Gwadar to Nawabshah gas pipeline and LNG terminal at Gwadar port as an alternate plan to facilitate Iran-Pakistan pipeline and transport liquefied natural gas (LNG).
**

The Gwadar to Nawabshah pipeline, with 42-inch diametre shall be laid along with two compressor stations. The terminal will have the capacity to handle up to 500 mmcfd of gas.

Interstate Gas Systems (Pvt) Limited (ISGS) will be authorised to execute the implementation of the project. The committee also directed the Ministry of Petroleum and Natural Resources to finalise the funding plan preferably on government-to-government basis or build, operate and transfer or build, own, operate basis.

The government had decided to lay the pipeline from Gwadar to Nawabshah in Sindh **“as an alternative plan” **in view of international sanctions working against Iran-Pakistan Gas Pipeline, according to petroleum minister Abbasi who said Pakistan could face penalties from Iran under the bilateral gas agreement beyond Dec 31 due to failure in implementing the project but Islamabad had issued a notice of force majeure to Iran because of circumstances beyond Pakistan’s control, like US sanctions against Tehran.

The Gwadar to Nawabshah pipeline would suggest Pakistan’s seriousness to implement the pipeline project that Pakistan required at all costs to link Gwadar with the gas system in Sindh and the rest of the country.

This would leave about 70km of pipeline segment between Gwadar and Iranian border which could be constructed immediately whenever international sanctions are lifted against Tehran. Companies from Japan, Russia and Turkey have also shown keen interest to participate in this project.

**China seemed to be the strongest contender for Nawabshah-Gwadar pipeline given the geo-strategic environment and China’s overwhelming role in the development of Gwadar port and export processing zone.

The ISGS had been directed to complete tendering and agreement signing process within two months so that the pipeline was ready by November 2015.**
*
Published in Dawn, October 15th , 2014*

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Re: ECC gives go-ahead for Gawadar-Nawabshah LNG Terminal

LNG to arrive in Pakistan within next three months: NA informed

Monday, 20 October 2014 20:33
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ISLAMABAD: Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi Monday informed the National Assembly that the Liquefied Natural Gas (LNG) would arrive in Pakistan within next three months.

Replying to the questions in National Assembly, the minister said the previous government had tried their level best to install an LNG terminal in the country but failed to do so.

The minister said under the policy, compressed natuiral gas (CNG) dealers would be allowed to import LNG on their own and supply it to consumers on regular basis after its conversion.

This market based mechanism was expected to become operational in the next six months, he hoped.
He said more terminals were planned and it was the effort of the present government to import two billion cubic feet of LNG in four years.

To another question, the minister said total recoverable reserves of oil in Khyber Pakhtunkhwa were 126 million barrels, besides 1334 billion cubic feet of gas. The average gas production from Khyber Pakhtunkhwa at present was 370 mmcft per day.

Shahid Khaqan said that a mechanism was under consideration to ensure uninterrupted supply of CNG to consumers.
He said the present government had granted licenses to the various companies for drilling which would help to increase the gas production in the country.

Shahid Khaqan said during the last ten years no government had given attention to drilling in the country, that was why the gas reservoirs were still stand on the same capacity.

The minister said the present government would announce a petroleum policy so that drilling would be started as soon as possible, adding that the fruits of drilling would avail after eight to ten years.

Regarding the job opportunities of drilling work, the minister said employments were offered to the local people of the area and no political figure could influence in this regard.

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Re: ECC gives go-ahead for Gawadar-Nawabshah LNG Terminal

Import facility: ‘LNG terminal to be ready by Jan 26’

By Our Correspondent
Published: October 23, 2014

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Part of the financing will come from International Finance Corporation and Asian Development Bank. STOCK IMAGE

KARACHI: Engro Elengy Terminal Private Limited (ETPL) said on Wednesday that it will be ready to receive liquefied natural gas (LNG) consignments at Karachi’s Port Qasim by January 26, 2015.

Vital works related to LNG infrastructure including the 14.5-metre deep dredging of the channel, erecting pillars for the jetty, construction of pipelines and basic engineering has been completed, Engro ETPL CEO Sheikh Imran ul Haque, told journalists during a briefing on the project.

ETPL has hired a floating storage and regasification unit (FSRU) – a large ship with onboard liquid-to-gas conversion facility and storage tanks – that will be docked at a new jetty being built at the port.

The FSRU has capacity to handle an average of 600 million cubic feet per day (mmcfd) of gas. Pakistan’s government will use 200 mmcfd of the capacity to import LNG by itself for the first year and then expand the import volume to 400 mmcfd.

At least four private ‘parties’ are also in talks with ETPL to use its spare capacity to import gas, Haque said. “Independent power producers (IPP) and CNG station owners are among those who have approached us.”

Doubts remain if the government will be able to confirm its part of supplies by the time the terminal is ready. But Haque insisted that the government has already issued tender to import LNG through Pakistan State Oil (PSO).

About financing of the $145 million project, he said the terminal was being built even without financial close. “This is quite an achievement for us. We have all the money we need and it was arranged from subordinate loans and through our equity.”

Part of the financing will come from International Finance Corporation (IFC) and Asian Development Bank (ADB). Engro’s investment is not protected by
any sovereign guarantee, Haque said. “There is only the take-or-pay clause, which means we have to be paid for 200 mmcfd of the terminal’s capacity.” ETPL has been allowed a tariff of 66 cents per million British thermal unit for the terminal.

The Sui Southern Gas Company, which will receive the LNG supplies into its pipeline network, has issued a standby letter of credit to the company, covering six months of payment for the tariff.

“This is only for six months and still it doesn’t guarantee what will happen after that,” said the CEO. “This is still nothing compared to the kind of protection IPPs get.”

Pakistan produces around 4,000 mmcfd of gas against a demand of over 6,000 mmcfd. The LNG project is expected to add around 10% to current supplies. Unlike on-shore LNG terminal, which costs much more and takes longer to be built, Engro’s design includes a jetty to be constructed near its existing liquid terminal at Port Qasim.

The FSRU being hired from US-based Excelerate Energy will be permanently berthed at the jetty and supplied by LNG tankers.

Work began on the LNG import project in 2005 but every attempt ended up with enquiries over transparency issues. Industry officials say that Pakistan must immediately start its import if it intends to maintain the current GDP growth rate.
*

Published in The Express Tribune, October 23[SUP]rd[/SUP], 2014.*

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Re: ECC gives go-ahead for Gawadar-Nawabshah LNG Terminal

^^^ But Pakistan is not short of electricity. Pakistan can produce twice what Pakistan needs. All is about money and affordability. So, what difference it would make if supply is increased?

It is just like, a village has five clothing shops, still people are found moving around half naked. Person (Zardari, Bhutto, Nawaz) administrating the village was not only corrupt but an idiot, who thought that people are half naked because there are not enough cloth shops, so lets open another shop. Surprisingly, even after addition of another shop, people were found still moving around half naked, without any improvement in condition :)

Person administrating should have known that people are moving around half naked because he and his administration team was corrupt. Due to his corruption, people are poor and thus could not afford cloths. So, increasing shops would make no difference.

If honest person (like Musharraf) would get administration, he would not do corruption as well as stop corruption of others, than people would have money to buy cloths, and then even with 3 shops in village, all people would move around dressed.

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Re: ECC gives go-ahead for Gawadar-Nawabshah LNG Terminal

so what is the final verdict... is Iran-Pakistan gas line still on or off? I can't really keep up with the u-turns.

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Re: ECC gives go-ahead for Gawadar-Nawabshah LNG Terminal

Iran gas pipeline is good for Pakistan, but it has very little commission for Thugs, so what you expect?

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Re: ECC gives go-ahead for Gawadar-Nawabshah LNG Terminal

One liner and most meaningful post. In future please follow this pattern. By the way no one has patience and time to read your 100,000,0000 words posts.

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Re: ECC gives go-ahead for Gawadar-Nawabshah LNG Terminal

:cb: