ExxonMobil shelves LNG terminal in Pakistan

Aftab Ahmed

 US energy giant ExxonMobil has shelved a plan to set up an LNG terminal as it exits a consortium.

It was part of a consortium of M/s Energas Terminal (Pvt) Limited, setting up an LNG terminal in Pakistan.

Two new terminal operators, M/s Energas Terminal (Pvt) Limited and M/s Tabeer Energy (Private) Limited, had accepted the terms & conditions and deposited to set up terminals.

Now, ExxonMobil has exited Energygas consortium which will lead to withdrawing its plan to set up LNG terminal in Pakistan, an official familiar with the development said.

Earlier, ExxonMobil had partnered with Pakistan’s exploration and production companies and drilled an offshore well. But it did not succeed in finding out reserves.

Later it entered into a partnership with an Energy Company to set up an LNG terminal in Pakistan. An Energas is a consortium of industry and power plants that is setting up a terminal in Pakistan.

https://newztodays.com/pm-concerned-over-delaying-new-lng-terminals-at-behest-of-a-major-energy-player/

ExxonMobil had partnered with Energas to set up an LNG terminal at its own risk. The PTI government had allowed private parties to import LNG and market the product.

The private sector’s entry will break the monopoly of public-sector companies, and the private sector will be able to bring LNG at cheaper rates.

At present, two LNG terminals with a total capacity of 1.3 billion cubic feet per day (bcfd) are handling imports to meet domestic needs.

Pakistan needs more LNG terminals to meet the rising demand for gas. Mitsubishi is also working on setting up an LNG terminal in Pakistan.

According to government estimates, the country needs more terminals to import 3 billion cubic feet per day of gas in the coming years.

The government says that local gas production is depleting fast by 6 percent a year. So, the country needs more LNG imports to meet gas requirements in the coming years. Moreover, the government has opened the private sector for LNG imports. Therefore, the country needs more LNG terminals.