China and United Arab Emirates (UAE) companies have sealed deals to provide LNG to Pakistan, injecting $500 million in investment into the country. Kari is on the way.
Details reveal that China National Chemical Engineering Company and Bison Energy of Emirates have finalized the Master EPCF (Engineering Procurement Construction and Finance) agreement.
These projects mark a significant step in the LNG sector, being contracts awarded without government guarantees. Construction for the initial project kicks off in the fourth quarter of 2024, followed by the second project in 2025. Bison Energy plans to independently source LNG from countries like Oman, Abu Dhabi, Australia, and Nigeria, operating solely without government involvement in Pakistan.
Moreover, Bison Energy will oversee gas distribution, reducing reliance on Sui Southern Gas Company and Sui Northern Gas Pipeline through efficient marketing strategies.
Previously, the Competition Commission of Pakistan greenlit the acquisition of Teufrish Energy Limited and Teufrish Energy Marketing Limited by the Emirates company, both involved in LNG terminal construction, operation, and import.
Post-merger, Bison Energy acquired all shares of TEPL and TEMPL from Diamond Gas International Japan Co., Ltd. The initial project, named the LNG Pluto Project, aims to establish a comprehensive supply chain at Karachi Port, including an LNG terminal, storage, filling facilities, and related structures.
The second endeavor, known as the R-LNG Project or Ambush Project, plans a long-distance pipeline supply chain with an LNG terminal at Port Qasim, gasification units, long-distance pipelines, and related infrastructure.
Upon completion, the project will deliver 750 million cubic feet of gas daily to the domestic market. CNCEC, as per the Master EPCF contract, handles design, construction, operation, and financing for both terminals, estimated at $500 million, ensuring uninterrupted LNG supply.
During the signing ceremony, Shahid Karim, CEO of LNG Flex, hailed the milestone as a beacon of hope for Pakistan’s consumers, foreseeing not just meeting gas demands but also job creation and business opportunities. Chairman CNCEC Zhu Hong affirmed dedication to Pakistan and the “Belt and Road” initiative, emphasizing that collaboration on these projects will deepen the bond between Pakistan and China.
