Daewoo Gas Signs Contract with CNCEC for Offshore LNG Terminal
Zeeshan Javaid
Daewoo Gas has signed a Master EPCF (Engineering Procurement Construction and Finance) with China National Chemical Engineering Construction Company to set up an offshore LNG terminal in Pakistan at a cost of $300 million.
They signed the agreement at a virtual ceremony.
Under the terms of the Master EPCF contract, CNCEC would design, construct and finance an offshore LNG terminal complete with topside equipment to enable LNG filling into ISO containers for use in Pakistan.
The specialized LNG containers will be moved by truck all over Pakistan where LNG will be re-gasified at client sites. At its peak, Daewoo Gas’ terminal will handle 10,000 metric tons of LNG per day, improve Pakistan’s energy supply, create thousands of jobs nationally, and reduce carbon emissions.
Cost of Daewoo Gas LNG Project
The total foreign investment in this project including the terminal, facilities, LNG logistics and supply infrastructure is estimated to be USD 300 Million. Daewoo Gas LNG project is a technological breakthrough, based on an innovative design of transporting liquefied natural gas (LNG) on trucks and bowsers loaded with ISO tanks rather than through the pipeline system.
This technology is referred to as a “Virtual LNG” (VLNG) pipeline and is common in China. Speaking at the agreement-signing ceremony, Mr. Shahid Karim, Chief Executive Officer of Daewoo Gas said, “We are pleased to award the EPCF contract to CNCEC for building a state of the art VLNG Terminal for use in Pakistan.
We plan on operationalizing the terminal within a year, before summer 2023, at Pakistan’s LNG zone in the Arabian Sea. We hope that with the commencement of this project Daewoo Gas will not only help meet the energy needs of Pakistan but also contribute to the upgrading of the natural gas industry in the country with its innovative technology.
LNG is the correct transition fuel for Pakistan from diesel and oil to renewables. We look forward to the continued cooperation of the Government of Pakistan to help us achieve the goal of delivering LNG to Pakistan’s industrial and domestic customers at the earliest.”
Gas Supply through LNG tanker trucks
For the first time in Pakistan, Daewoo Gas will develop a gas supply chain in parallel to the fixed pipeline supply network at no risk or cost to the Government of Pakistan.
Facilitating re-gasification at their sites, all customers nationwide will be supplied gas through specialized LNG tanker trucks.
This project would go a long way to give gas consumers a choice of supply apart from piped gas and augment the Government’s efforts to optimize gas supply to far-flung areas that are not connected to the national gas transmission network.
Daewoo Gas also plans to use the LNG in its own long-distance bus and truck fleet operated by Daewoo Express as a substitute for more expensive and polluting diesel. Chairman of CNCEC Mr. Hu Liufang said, “We welcome the award of this significant contract by Daewoo Gas and look forward to designing and constructing world’s largest VLNG terminal for offshore installation.
This large and ambitious project represents the ideals of CPEC industrial cooperation and technology transfer between the brotherly countries of China and Pakistan.”
Sameer Chishty, Chairman of Asiapak Investments which is the holding company for Daewoo Gas, was present at the signing ceremony and said, “AsiaPak Investments is committed to innovative technology projects in Pakistan’s energy sector, a country with a significant energy need for industry and households.
Through this VLNG project, AsiaPak Investments contributes to further strengthening Pakistan and China’s Iron Brotherhood. We are grateful to all the stakeholders especially OGRA, Port Regulators and the Government of Pakistan for their encouragement and support, ensuring an uninterrupted supply of affordable energy to the people of Pakistan.”
Pakistan secures LNG contracts at the highest rates
CNCEC China National Chemical Engineering Co., Ltd. (CNCEC) is a Chinese Fortune 500 company and is one of the largest contractors in the world, specializing in the energy sector. In Pakistan, CNCEC has successfully completed numerous projects.
The parent company of China National Chemical Engineering Co., Ltd. is China National Chemical Engineering Group Corp.. a state-owned enterprise that is supervised by the state-owned Assets Supervision and Administration Commission o the State Council.
DAEWOO GAS is A joint venture between AsiaPak Investments, and leading Chinese energy and technology companies that have been operating VLNG systems in China for many years.
Daewoo Gas is Pakistan’s premier VLNG project which aims to import and deliver LNG to the vast underlying demand for natural gas in Pakistan at no risk and cost to the exchequer and without taking up capacity in the national fixed pipeline.
Using an innovative design for offshore LNG filling in specialised ISO containers, Daewoo Gas will deliver these tanks via trucks to customers on and off the national gas grid.
Daewoo Gas prides itself in the most innovative design, highly experienced management team, highest quality safety standards, and world-class technology partners for reducing the widening gap between Pakistan’s energy supply and demand.
ASIAPAK INVESTMENTS A Hong Kong-based investment company which is among the leading investors in Pakistan’s energy, power, and logistics sectors. Their Pakistan portfolio includes Daewoo Express (Pakistan’s largest transport company), Liberty Power (235MW gas-fired power plant in Sindh), Sino Sindh Resources (Thar Coal Block One, a CPEC early-harvest project with Shanghai Electric), and, Daewoo Gas (LNG terminal and virtual LNG pipeline).
